The Finance Bank should be established for the public services of the municipalities in the construction and installation of the cities. ILLER BANK2018 Contents

SECTION ONE SECTION TWO SECTION THREE SECTION FOUR Presentation Bank’s Annual Activities Management and Corporate Financial Information 7 Agenda of the Ordinary General 22 2018 Investment and Financing Program Governance Practices and Risk Management Assembly Meeting 23 Works carried out with 100% Credits Financed by Bank Equity. 8 Corporate Profile 24 Bank’s 2018 Annual Activities 54 Board of Directors 69 Audit Board Report 11 Message From the Minister of 26 Project to Support the Infrastructure of Municipalities (BELDES) 56 Audit Committee 70 Audit Committee’s Assessment Of The Operation Of The Environment and Urbanization 26 Water and Sewer Systems Infrastructure Project (SUKAP) 57 Information On Audit Committee Internal Control, Internal Audit, And Risk Management 13 Message from the Chairman 27 Works Being Conducted With Appropriations Made From the Bank’s Profits 58 Information on General Manager Systems and Its Statement Concerning Activities in Year 2018 15 Message from the General Manager 30 Ministry of Environment and Urbanization Ministry with 60 Information On Internal Systems Unit Directors 74 Independent Audit Report 16 Our Corporate Message Works made under the Protocols 61 Organizational Chart Of Iller Bank 78 Iller Bank Non-Consolidated Financial Report for the Year 18 Summary Financial Results 32 Resource Development Activities and Urban Transformation Projects 63 Summary Board of Directors Report Ended on 31 December 2018 20 Capital and Partnership Structure 34 Profile of Credits Provided out of the Equity of Iller Bank 66 Compliance Opinion On The Annual Report 184 As of 31 December, 2018; Cash and Banks 36 Relations with International Financial Institutions 68 Human Resources Practices 190 Risk Management Policies Implemented Per Risk Type 40 Categorical Breakdown of Works Completed in 2019 68 Transactions The Bank Enters Into With Members 192 Information on Ratings 42 Statutory Shares Transferred to Local Governments Of Its Own Risk Group 193 Summary Financial Information For The Period 2014-2018 44 Debts Subjected to Reconciliation 68 Activities For Which Support Services Are Outsourced 194 Information On Works Completed By The Bank in 2018 45 Debts not Subjected to Reconciliation 224 Contact Information 46 Subsidiaries 46 Niğbaş Niğde Concrete Industry and Trade Inc. (NİĞBAŞ) 46 Emlak Konut Gayrimenkul Yatırım Ortaklıgı Inc. (Emlak Konut REIT) 48 Other Activities Carried Out By Ilbank 52 Research-Development Activities for New Services and Operations 6 7

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Agenda of the Ordinary General Assembly Meeting

Date of General Assembly Meeting

Thursday, June 27, 2019 Time: 14:00

Venue

JW Marriott Hotel Kızılırmak District, Muhsin Yazıcıoğlu Street, No:1 Söğütözü Çankaya/ANKARA

Agenda of the General Assembly Meeting

1. Opening & moment of silence, 2. Formation of the General Assembly Council and the authorization of the Council Chair to sign the Ordinary General Assembly Meeting minutes, 3. Reading, deliberating and approving the Board of Directors’ Report and the Statutory Auditors’ Report, 4. Reading, reviewing, deliberating and approving the Balance Sheet and Profit/Loss accounts having undergone independent audits, for year 2018, 5. Individual releases of each of the company’s directors and statutory auditors 6. Determining the remuneration to be paid to the members of the Board of Directors and Statutory Auditors 7. Authorizing the Board of Directors members as per Articles 395 and 396 of the Turkish Commercial Code 8. Deciding on the cancellation of uncollected Bank receivables as required by Article 6 of the Bank Law, 9. Submission of the Amendment Text of Iller Bank Articles of Association approved by the Banking Regulation and Supervision Agency and the Ministry of Commerce to the approval of the General Assembly, 10. Election of the members of the Board of Directors on behalf of Special Provincial Administrations and Municipalities in accordance with Article 7 of the Bank Law, 11. Authorization of the Bank’s Board of Directors to be appointed to the next general meeting and signing of the contract for the Independent Audit Institution that will carry out Independent Audit of the Bank for 2019 and the following periods in accordance with the related regulation of the Banking Regulation and Supervision Agency, 9. Petitions and Suggestions 10. Closing 8 9

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Corporate Profile Corporate Profile

On 11 June 1933 during the presidency of Mustafa Kemal Atatürk, a financial institution called “Municipalities Bank” (Belediyeler Bankası) Article 3 of the Law no. 6107 was incorporated under Law no. 2301 with TRL 15 million capital in order governing Iller Bank sets forth that; to foster municipal prosperity and of providing credit support to such administrations as lacked financial resources and means. In order to achieve these summarized objectives, Iller Bank may;

One of the Republic’s oldest established institutions, being founded in 1933 as the Municipalities Bank, Iller Bank is a Extend any and all types of short-, medi- incur any debts or enter into any conditional proud and unique institution in the world’s history of development banking. um-, and long-term cash and non-cash lo- obligation in doing so, As constitutionally In recognition of the successful services that quickly resulted from the technical and financial support given to munici- ans to its shareholders; and statutorily prescribed organizations, palities, “İller Bankası” (“Provinces Bank”) was established on 13 June 1945 under Law no. 4759. As the successor of local governments are the cradle of democ- Conduct, or arrange for the conduct of, re- the Municipalities Bank, the bank’s name was a reflection both of its expanded duties, authorities, and responsibilities search, project development and consul- racy and have an important place in, and and of its new legal status. tancy services in its fields of activity, and contribution to, the inculcation of democra- Under the Law no. 6107 published in issue 27840 of the Official Gazette on 8 February 2011, Iller Bank was officially provide technical assistance in the same, tic ideals and principles in society. transformed into a joint-stock company (İller Bankası AŞ) as of the same date. Lead the way in the formation of companies Iller Bank is a unique institution, which has as a bank, and transfer control of them, Act no exact analogues anywhere else. Having as an insurance agent, a special place in the annals of development Open branches and representative offices banking by virtue of its distinctive structure, in Turkey and abroad, provided that ne- Iller Bank has been providing local gover- cessary approvals are obtained, Cooperate nments with financial support as well as with domestic and/or foreign financial insti- transforming that support into investment tutions, become a member of national and ever since the day it was founded. international organizations of which they The objectives of Iller Bank are; Iller Bank is a unique institution, which has are members, It can obtain resources from no exact analogues anywhere else. Having To meet the financing needs of special domestic and international financial institu- a special place in the annals of development provincial authorities, municipalities, tions, money and capital markets, and any banking by virtue of its distinctive structure, and their affiliated organizations, and kinds of funds. Iller Bank has been providing local gover- of local administrative associations of Obtain resources from domestic and inter- nments with financial support as well as which only these may be members, national financial institutions, money and transforming that support into investment To develop projects concerning local- capital markets, and any and all funds, ever since the day it was founded. ly-provided common services for the Engage in any and all kinds of development Iller Bank never ceases its efforts to execute people dwelling within the boundaries and investment banking transactions that its duties, responsibilities, and powers be- of such administrations, will help it achieve its objectives; fore local governments, with an organiza- To provide such administrations with Develop projects and construct special tion based on 17 Departments as well as consultancy services and assistance projects and urban infrastructure projects Legal Counsel, R&D Board, Board of Direc- on urban projects of a technical natu- demanded by the Ministry, or arrange for tors, Audit Committee Divisions, Secretari- re and in the conduct of infrastructure the development and construction there at, Media and Public Relations Division, and and superstructure works, of, Execute, or arrange for the execution of, Recreation Facilities and Nursery Division at To perform any and all functions re- profit-making real estate investment proje- the Headquarters, and 18 Regional Directo- lated to developmentand investment cts and implementations in order to obtain rates in the provinces, employing a total of banking. funds for the Bank, provided that it shall not 2533 personnel. 10 11

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Message From the Minister of Environment and Urbanization

“As Iller Bank; Throughout Turkey in 2018 a total of TRL 9 billion 906 million sources have quoted our local management, we respond effectively to the physical needs of our local government.”

Iller Bank, affiliated to our Ministry; With 86 years of experience, it is one of the most established institutions in our country. Our Bank provides support in terms of ensuring the quality and efficiency of the services provided by our local governments, and effectively carries out technical and consultancy support. Our bank, which takes our people and the needs of our people at the center of its activities, is an example to our municipalities with its structure open to developments in the world. As the Ministry of Environment and Urbanization; We take into consideration the infrastructure and superstructure of our cities within the framework of sustainable planning and work hard to achieve a better and livable environ- ment for our country and people. The basic duties of the Ministry, such as the establishment and implementa- tion of environmental policies, and the establishment of healthy urbanizati- on, increase the responsibility of Iller Bank, which is affiliated to our ministry, day by day. As Iller Bank; Throughout Turkey in 2018 a total of TRL 9 billion 906 million sources have quoted our local management, we respond effectively to the physical needs of our local government. I wish that Iller Bank’s 2018 Annual Report will be beneficial for our country, nation and cities.

Murat KURUM Minister of Environment and Urbanization 12 13

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Message from the Chairman

“We, as the Ilbank family; Thanks to our 86 years of experience, strong financial structure and strategies, we aim to continue our activities in 2019 in line with our mission and vision. With the support we receive from our Ministry of Environment and Urbanization, our stakeholders and our employees and their trust in us, we are rapidly moving towards our goals.”

We carry our institution, which has its signa- TRL 8,536 million of this amount was exten- ture in every corner from the villages of Turkey ded as a loan from our shareholders’ equity to the metropolitan cities, to the future with and the remaining portion was financed from sure steps. Protecting our heritage from our grant funds, loans provided from foreign fi- strong history and building new, more livab- nancial institutions and the Bank’s profit. le and greener cities through new moves are A total of 535 works, 94 drinking water from among our main goals. Our Bank continues to the construction works of local administrati- serve by developing its high-quality service ons financed from the bank’s equity, 344 other concept since the Republic and maintaining its infrastructure, 21 sewerage, 2 solid waste, 74 sense of responsibility in order to enable our Municipal Structures sector, were completed developing cities to reach a city texture where in 2018 and were put into service for our pe- modern, quality living spaces are developed ople in the region. and reproduced. Within the scope of the Water and Sewerage Our Ministry of Environment and Urbanizati- Infrastructure Project (SUKAP), a total of TRL on is taking important steps in urban trans- 1.438 million was spent in 2018, of which TRL formation projects, which is one of the most 548 million was granted from the grant fund important problems of our country. ILBANK; and TRL 890 million was loan. by rapidly taking part in these transformation projects, it continues to provide all kinds of te- We, as the Ilbank family; Thanks to our 86 chnical and financial support for the efforts of years of experience, strong financial struc- local administrations to create livable cities as ture and strategies, we aim to continue our in the previous years. activities in 2019 in line with our mission and vision. With the support we receive from our Today, our Bank contributes greatly to the so- Ministry of Environment and Urbanization, lution of financial, technical infrastructure and our stakeholders and our employees and their superstructure problems of our local admi- trust in us, we are rapidly moving towards our nistrations with its strong financial structure goals. and service-oriented working system. Changed the face of our country, our cities While we end 2018 with positive financi- Turkey, the Bank experienced and producing al indicators, we know that we need to work projects in towns and villages equipped team harder by setting larger targets in 2019. Our in every sense; It will continue to take part in Bank, which has a strong equity capital, has all services that will guarantee the future of transferred TRL 9.906 Million resources to our country. Ertan YETİM local governments over the investment prog- ram determined within the framework of the Chairman of the Board of Directors 2018 investment and finance program, which was determined as TRL 7.650 million. 14 15

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Message from the General Manager

“It is very clear that we have reached the point where we have come with the reconstruction of the hearts as well as the cities. In other words, we are building cities with a sustainable, efficient and environmentally sensitive approach to urbanization. We know that any service that does not come into contact with the human being is contrived and will be far from the hope of staying in the future.”

Every service is a kind of mirror where we will steps to leave a mark on behalf of our country see the reflections of our civilization. Being as Iller Bank. aware of the fact that cities constitute the es- When the financial data of the Bank in 2018 sence of our civilization, our Bank has come to are analyzed, it is seen that the asset size inc- these days with a service approach worthy of reased to TRL 32,221 million and increased our strong civilization by building the urbani- by 29% compared to 2017 figures. Our profit zation infrastructure of our country on proje- increased by 68.6% and reached TRL 1,662 cts that will leave a mark on the future. million in 2018. The return on assets, which is It is very clear that we have reached the point an indicator of the efficient use of the Bank’s where we have come with the reconstructi- resources, was 5.16% and the return on equity on of the hearts as well as the cities. In other was 8.95%. words, we are building cities with a sustai- In 2018, the Bank’s paid-in capital increased nable, efficient and environmentally sensitive by 13.15% and reached TRL 14,847 million. approach to urbanization. We know that any Our Bank ranks first in the banking sector with service that does not come into contact with its paid-in capital. In 2018, the Bank’s revenu- the human being is contrived and will be far es increased by 63.5% compared to the previ- from the hope of staying in the future. ous year and reached TRL 3,108 million. On the whole, we are going through a period In the development of our cities, urban inf- in which significant achievements were achie- rastructure and superstructure; As the Bank, ved in terms of service in local governments we continue our efforts with all our efforts in and these gains were sustained with strong order to realize environmentally sensitive, he- stability and the history of municipality was althier and sustainable urbanism. rewritten. We take strong and big steps to Iller Bank, from 1933 to today, the first day’s make brand values ​​in each of our cities with excitement and enthusiasm, strong local ma- the understanding of each city and country. nagement, We serve our cherished nation At a time when the concept of urbanism in the with a strong understanding of Turkey. After world is progressing so fast, in line with the that, we will continue to produce services with vision of our Government in 2023, we take great efforts, determination and sincerity.

Yusuf BÜYÜK General Manager 16 17

ILLERİLLER BANKBANKASI ANNUAL 2018 FAALİYETREPORT 2018 RAPORU ILLER BANK ANNUAL REPORT 2018

Our Corporate Message

OUR VISION

To be an international development and investment bank which leads modern urban development and whose service quality is proven.

OUR STRATEGY

To serve with a OUR MISSION perspective of investment banking and total quality To contribute towards sustainable management. urbanization by creating and developing projects conforming to international standards, by supplying credit, by acting as a consultant, and by providing technical support in order to satisfy the urban needs of local governments. 18 19

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Summary Financial Results Summary Financial Results

Total Assets (Thousand TRL) Loans (Thousand TRL) Shareholders’ Equity (Thousand TRL)

Change Change Change 28,94% 26,23% 16,03% 32.220.920 28.288.482 24.988.689 22.409.958 18.580.325 16.012.794

2017 2018 2017 2018 2017 2018

Amount of Change 2017 2018 Change Percentage (%) Total Assets 24.988.689 32.220.920 7.232.231 28,94

Liquid Assets and Banks 1.779.939 2.839.526 1.059.587 59,53

loans 22.409.958 28.288.482 5.878.524 26,23

Shareholders Equity 16.012.794 18.580.325 2.567.531 16,03

Paid-in capital 13.122.184 14.847.536 1.725.352 13,15

Interest Incomes 1.482.495 2.326.957 844.462 56,96 Ratio (%) 2017 2018

Interest Expenses 30.286 328.586 298.300 984,94 Loans / Total Assets 89,68 87,80 Capital Adequacy Ratio 47,81 46,08 Non-interest expenses 885.095 1.117.262 232.167 26,23 Liquid Assets / Total Assets 7,12 8,81 Non-interest incomes 418.694 781.245 362.551 86,59 Shareholder's Equity / Total Assets 64,08 57,67 Profit before tax 1.232.887 873.233 70,83 2.106.120 Earnings on Assets 3,95 5,16 Net Period Profit / Loss 985.808 1.662.354 676.546 68,63 Earnings on Equity 6,16 8,95 20 21

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Capital and Partnership Structure As of December 31, 2018, TRL 14.847.536 thousand of TRL 18 In 2018, the Bank’s paid-up capital increased by billion of capital is paid. %13,15 and reached TRL 14.847.536 Thousand.

In paragraph 2 of the article 4 of “the Law No. 6107 on İller Bank Joint Stock Company” states; that the bank’s capital is TRL* 9.000.000.000 (Nine Billion TRL) and that this capital can be increased up to five times by the Decree of the Council of Ministers,

Its capital resources will consist of the following:

According to Law no. 5779 on Allotments of General Budget Revenues to be Allocated to Special Provincial Authorities and Mu- Owing to this structure, the bank’s capital is not nicipalities dated 2 July 2008, sums equal to 2% of total tax revenue allotments to be divided into shares and the registered capital distributed by the Ministry of Finance and system is not employed. Iller Bank, which sums will be deducted As of December 31, 2018, TRL 14.847.536 monthly, thousand of TRL 18 billion of capital is paid. 30% share that will be set aside from the Neither the chairman nor any member of the bank’s annual net profit after the bank’s tax bank’s Board of Directors, nor any audit com- and other legal obligations will be deducted, mittee member, nor the general manager or any vice president is a shareholder in the bank. Funds approved to be transferred into the bank’s capital as per the provisions of oth- Nominal capital of the Bank over the years, the er legislation, and any and all donations and collection of capital, paid and unpaid capital sit- contributions made to be added to the capital. uation are presented in the table below.

Iller Bank’s Capital Movements In The Past Ten Years (Thousand TRL)

Years Nominal Capital Annual Capital Collection Paid-up Capital Outstanding Capital

2009 9.000.000 864.963 4.688.528 4.311.472

2010 9.000.000 1.216.366 5.904.894 3.095.106

2011 9.000.000 1.040.512 6.945.406 2.054.594

2012 9.000.000 789.784 7.735.190 1.264.810

2013 9.000.000 793.125 8.528.315 471.685

2014 18.000.000 874.065 9.402.380 8.597.620

2015 18.000.000 1.081.365 10.483.745 7.516.255

2016 18.000.000 1.207.004 11.690.749 6.309.251

2017 18.000.000 1.431.435 13.122.184 4.877.816

2018 18.000.000 1.725.352 14.847.536 3.152.464 22 23

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

III. External loans IV. For Resource Development Activities Iller Bank is a development and investment bank whose activities This program; are governed by Article 77 of the Banking Law (Nr. 5411). Was realized as %129.5 with the use of funds transferred to the 1.261.985 75 Billion Bank under the protocols related Thousand Thousand to the use of the loans from the The Bank’s duties are spelled out in a law concerning its incorporation, where they are defined as satisfying TRL TRL Bank’s equity amounting to TRL the financing need of special provincial authorities, municipalities and their affiliated organizations; develop 8.536.070 Thousand, projects concerning locally-provided common services for the people dwelling within the boundaries of such total; 1.011.914 Thousand offered as administrations; providing such administrations with consultancy services and assistance on urban projects of grant funds transferred from the a technical nature and in the conduct of infrastructure and superstructure works, and performing any and all General Budget budget, 7.650.141 development and investment banking functions. TRL 51.150 Thousand offered as Thousand grants from the profits of the The Bank fullfils these tasks with own resources, funds and grants from the general budget and financial re- TRL sources provided from foreign banks and institutions. Bank and TRL 306.834 Thousand ...is as planned. as external loans.

Local in Turkey Worldwide Resources Transferred to Works carried out with 100% Credits Financed by Bank Equity. Management 2018 Investment and Financing Program

In addition to the bank’s investment program, local Iller Bank transferred total of TRL 9.905.968 thousand to local governments across Turkey administrations have been allocated with credits for within the scope of investment and financing program for 2018. Source expense amounting the works requested, and combined administrations A total of 44 works, including 2 maps, 3 drinking water projects, 4 9.905.968 to TRL 467 million 901 thousand was made for source development activities of the Bank. have been able to implement sewerage, drinking wa- sewerage projects, 3 drinking water drilling, 4 geotechnics, 2 GIS, 23 Thousand Total source utilization is defined as TRL 10.373.869 Thousand. TRL ter, maps, zoning, renewable energy, expropriation, renewable energy, 1 unit and 2 superstructure projects, have been road transport system, road construction, Highway completed from the project works of local administrations. intersections, Underpass-Overpass and urban trans- I. From Bank-Based Loans II. Grant sources formation projects. Number of Works Number of Works For Resource Development A total of 535 of the local adminstration works have Sector in Progress Completed Activities been completed, of which 94 are drinking water, 344 ot- 5 Billion 1.313.156 her infrastructure, 21 sewerage, 74 municipal construc- Zoning plan 7 0 467 tions works and 2 in the solid waste sector. Billio TRL Thousand Maps 2 2 TRL 901 Number of Works Number of Works Geotechnical 5 4 Thousand Sector in Progress Completed TRL GIS (City Information System) 4 2 Drinking water 228 94 For Water and Sewerage 719.270 Drinking Water Project 4 2 Works carried out with 100% Loans Infrastructure Projects; Thousand TRL Other Infrastructure 951 344 Sewerage Project 6 3 Total Water and Sewage Infrastructure Projects, Resource Usage Sewage Drinking Water Drilling 4 4 Material Equipment and Appliances loans, 51 21 Allowance from Bank 577.986 Profit; Thousand Renewable Energy 25 23 Guarantee loans, TRL Municipality Construction 8 2 10.373.869 Cash assistance loans and cash loans, Wastewater Treatment - Sea Discharge-Solid Waste 2 1 Solid waste 431 74 Thousand Superstructure Project Work carried out by allocations from the Urban Infrastructure 15.900 4 2 TRL Bank’s profits. Equalization Allowance Thousand TRL Total 1.669 535 Total 63 44 24 25

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Urban Infrastructure 2018 Annual Official Investment Program Equalization Allowance The use of the Urban Infrastructure Settlement Allowance In accordance with the Provisional Article 1 For the projects with external loans includ- within the sector in 2018; of the Law No. 5779 on the Share of General ed in the investment program of Iller Bank, Iller Bank’s Investment Program for the Year 2018 entered into Budget Tax Revenues to the Provincial Pri- TRL 6.993 Thousand expenditure has been made in sewerage and which are not included in the investment force as TRL 1.096.948 thousand upon its publication in the vate Administrations and Municipalities, the treatment plant works. ceiling, but in which the appropriation is appropriation transferred to the Iller Bank Official Gazette issue 30224 (repeating) dated October 28, 2018. not included in the investment ceiling, an within the scope of the ‘Regulation on the In the year 2018, TRL 2.257 Thousand from the external loan obtained expenditure of TRL 1,261,985 Thousand Use of the Allowance for the Municipal Inf- from the World Bank, TRL 281.433 Thousand from the External Credit and TRL 15,900 Thousand for urban infra- rastructure Needs of Municipalities Genel, provided by the World Bank and TRL 23.144 Thousand from the Islamic Within the scope of the published Investment Program; structure projects are planned. It is used in the financing of drinking water, Development Bank TRL 306,834 Thousand external expenditure was Transport In the investment program, which is de- wastewater, solid waste, sea discharge, pro- Sewage sector Drinking Water Sector Energy Sector realized. (Urban Transportation) termined as TRL 274.135 Thousand, the ject and construction works. amount of TRL 118.292 Thousand and TRL 495.367 Thousand in Sewerage Projects is determined as TRL 144.522 Thousand and TRL 162.167 Thousand) TRL 22.989 Thousand expenditure has been made and Survey and Project Studies 495.367 274.135 8.741 156.538 27.7% realization has been achieved ac- Thousand Thousand Thousand Thousand cording to the official program. In 2018, 215 projects of the project were completed. A total of TRL 8.503 Thousand TRL TRL TRL TRL expenditure has been incurred for these activities, amounting to TRL 2.953 Thousand loan, TRL 4.709 Thousand grant and TRL 841 Thousand municipal sourced expenditure.

In 2018, a total of 2 projects, Solid waste projects 1 in the drinking water In 2018 Credit Grant Municipality Total in municipal services 274.135 the allowance is reserved. sector and 1 in the sewerage Expenditures 215 Qty. sector Thousand sector, were completed in the 2.953 4.709 841 8.503 TRL Project studies Thousand Thousand Thousand Thousand Investment Program. TRL TRL TRL TRL

Realization Status of Investment by Year 2018 Official Program

2018 INVESTMENT AND REALIZATIONS (THOUSAND TRL) Completed Projects in 2018 Number of projects in Progress in 2019 Number of The Ministry Of Finance Project Sector Tendered Expenditures from Other Works Projects Expenditures from bank Other Works 2018 Total Out External Loan Urban Infrastructure bank Sector Project (From The Balance Allowance) SUKAP Count SUKAP Grid 56 19 23 18 31 Potable Water Project Planned Realized Planned Realized Planned Realized Planned Realized Treatment 9 6 6 5 10 Urbanization (Development Plan 2 175 ------Grid 25 34 2 12 23 Geological Geotechnical) Superstructure Project Treatment 35 12 0 9 22 Potable water 16 212.978 - 274.135 118.292 7.650 - 219.270 179.933 Sector Marine Discharge/Solid Waste 3 - - 2 1 Sewage 28 88.581 6.490 495.367 144.522 8.250 6.993 500.000 366.985

Municipal Services (Solid Waste) 6 22.157 - 162.167 18.067 - - - - Superstructure Project Superstructure 8 4 9 6 7

Energy 2 162 - 8.741 - - - - - Potable Water Drilling Drilling 3 - 2 1 -

Transportation 5 18.469 - 156.538 22.989 - - - - Drinking Water Drilling Energy 1 - - - - (Urban Transportation)

Total 59 342.522 6.490 1.096.948 303.870 15.900 6.993 719.270 546.918 Total 140 75 42 53 94 26 27

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Sectoral Breakdown of Works Assigned to Finance with Water and Sewerage Infrastructure Project (SUKAP) (2011-2018) Works Executed with Financing from the Grants-in-aid from the General Budget and Potable Water Waste Water Total

the Grants-in-aid out of the Profits of the Bank Number of finished Works 315 577 892

Number of Works Under Construction 140 170 310

Number of Works Under Contract 16 29 45 Project to Support the Infrastructure of Municipalities (BELDES) Number of Works Contracted 21 25 46 Number of Works in Progress 492 801 1293

BELDES is a program to support the deve- in 2007 along with another TRL 41,150 Amount of Total Appropriation 2.991.425 5.982.757 8.974.182 lopment of good quality potable water sys- thousand for 20 municipal potable water Amount of Loans Extended 1.859.337 3.596.387 5.455.724 tems throughout Turkey. Under the “Mu- systems in 2008, the latter group of whi- Amount of Grants Extended 1.132.088 2.386.370 3.518.458 nicipal Infrastructure Support (BELDES) ch were covered by High Planning Council BELDES Projects Total Disbursement in year 2018 407.820 1.030.025 1.437.845 resolutions 2008 /12 dated 30 April 2008 Project” which was launched pursuant to Amount of Disbursements out of Loans in Year 2018 249.275 640.927 890.202 High Planning Council resolutions 2007/6 and 2008/64 dated 20 November 2008. Amount of Disbursements out of Grants in Year 2018 158.545 389.098 547.643 dated 1 March 2007 and 2007/49 dated Total appropriations reached TRL 129,650 Tender Stage 2 22 June 2007, Iller Bank prepares proje- thousand with the additional sum of TRL Qty. cts for, and organizes the construction of, 55,000 allocated in 2011. potable water systems in municipalities whose populations are less than 10,000 Within the scope of BELDES Project, 67 projects have been completed in previous Construction begun 2 people and which either lack potable water Qty. Works Being Conducted With Appropriations Made From the Bank’s Profits systems or whose systems are inadequa- years. The amount of expenditure made te. These projects are financed by grants for these projects in 2018 is TRL 1.812 Pursuant to Article 13 of Law nr. 6107 gov- financing by the special provincial admin- allocated from the General Budget. Under Thousand. The total amount of expen- erning Iller Bank Inc.̧, 51% of the Bank’s istrations. The procedures and principles 65 net profit for the year is made available as this project, appropriations amounting in diture made up to date has reached TRL Construction complated regarding the implementation of this para- Sectoral Breakdown of Construction 129.650 Thousand. Qty. grants-in-aid for financing technical and total to TRL 74,650 thousand has been al- graph shall be regulated by the regulation Works with Bank Profit in 2018 social infrastructure services in villages located for transfer to Iller Bank from the The existing work within the scope of the to be issued by the Board of Directors. which are carried out by special provincial Number of Number of General Budget for the construction of po- project will continue with the BELDES al- Works in Progress finished Works authorities; for financing the development Map, zoning plan, drinking water, wastewa- table water systems in 69 municipalities. lowance and the works within the scope Total Completed Works 69 Qty. of mapping, zoning plans, potable water, ter, treatment plant, sea discharges, solid This consisted of TRL 33,500 thousand of the project will be considered within the waste water, solid waste, city information waste landfill, geothermal power plant, city for 49 municipal potable water systems scope of SUKAP. system and similar urban infrastructure information system, survey and project work Potable water Potable water projects in municipalities with a population financing 50% a credit to the municipality. of less than 200,000 people, as well as for 2 0 Under SUKAP; In 2017, an appropriation of TRL 492.555 Water and Sewer Systems Qty. Qty. 1.293 Works As Of 31.12.2018; the financing of the construction of the said thousand has been allocated for the fi- Infrastructure Project (SUKAP) projects pertaining to municipalities with a nancing of the above mentioned works population of less than 25,000 people. including 15% income tax withholding tax. 892 Complete With the decision of the High Planning Between 2011 and 2018, a total of TRL Article 3 of the Law Amending the Tax According to the ”Regulation on the Ben- Qty. Council, municipalities with a population of 3,922,854 Thousand of appropriation was Laws and Certain Laws and Decree Laws efit of Iller Bank from the Annual Profit of Municipal Municipal 25.000 and under are provided with 50% transferred to the Iller Bank through the published in the Official Gazette dated 18 the Villages and Municipalities for Infra- Buildings Buildings of the project amount allocated from the Central Government Budget Law. January 2019 and numbered 30659 with structure Project and Construction Works 89 18 310 General Budget and the remaining 50% is Bazı (3) Percentage of net profit generat- landırıl, this amount is TRL 429,113 Thou- Ongoing Construction During the reporting period, a total of TRL Qty. Qty. Qty. provided by Iller Bank to the municipality. ed by the General Assembly in accordance sand municipalities and TRL 63,432 Thou- 1,437,845 Thousand expenditures have with the balance sheet approved by the sand is allocated to villages. The Bank allocates credit to the munici- been incurred in 2018, amounting to TRL General Assembly fifty-one uses the ur- palities with a population of more than 890,202 Thousand and TRL 547,643 45 ban regeneration practices of local gov- Business Contract Stage 25,000 and in the annex of the YPK decisi- Thousand. In 2018, 18 works were Qty. ernments, map, zoning plan, infrastructure on without complying with the debt stock Within the scope of SUKAP, a total of TRL and superstructure projects and the fi- completed in the municipal limit in the Law No. 5393. Total Total 8,974,182 Thousand has been allocated nancing of the construction works of these buildings sector with the projects as a grant for the financing of the 91 18 46 The job is at the tender stage. In addition, the projects of municipalities as TRL 3,518,458 Thousand grants and allowances allocated from the Qty. whose projects are not ready are primarily TRL 5,458,724 Thousand loans for drin- technical and social infrastructure services annual Bank profit. Qty. Qty. projected by Iller Bank. king water and sewerage investments. of the villages or for the financing of the 28 29

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Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

56 jobs in map sector, 48 in zoning plan sector, 53 in geotechnical sector, 34 in Potable drinking water project sector, 7 in sewerage project sector, 3 in drinking water Water Sector In Project Works; treatment sector, 38 jobs in wastewater treatment, sea discharge and solid waste 642 sector. A total of 257 jobs were completed. Thousand 56 works in the Map Sector, 48 in the Zoning Plan Sector, TRL 53 in the Geotechnical Sector, 34 in the Drinking Water Project Sector, 7 in the Sewage Project Sector, 3 in the Drinking Sectoral Breakdown of Construction Works Map with Bank Profit in 2018 Sector Water Treatment Sector, 3 in the Waste Water Treatment, Sea 1.381 Number of Number of Discharge and 38 in the Solid Waste Sector are Completed. Sector Works in Progress finished Works Thousand TRL A total of 257 works have been completed. Map 77 56

Zoning Plan 186 48 Zoning Plan Geotechnical 88 53 Sector 2.995 Drinking Water Project 45 34 Thousand TRL Sewerage Project 17 7

Water Treatment 7 3

Wastewater Treatment 48 38 Sea Discharge-Solid Waste Geotechnical Sector Total 468 239 917 Thousand TRL Within the scope of the Regulation on the Use of the Grant Allocated from Iller Bank’s Annual Profit in the Infrastructure Project and Construction Works of Vil- lages and Municipalities reden, In 2018, a total of TRL 51.150 Thousand was paid Drinking Water together with the construction and project works and the procurement of ma- Project terials purchased for the water needs of the municipalities, TRL 642 Thousand 1.572 for construction works in the drinking water sector, TRL 1.381 Thousand in the Thousand mapping sector in project works, TRL 2.995 Thousand in the development plan se- TRL ctor, TRL 917 Thousand in the geotechnical sector, TRL 1.572 Thousand in drinking water project sector, In the sewerage project sector, a total of TRL 7.645 Thousand loans, of which TRL 138 Thousand, was extended. Sewerage Project Sector Improvement of Grant and Incentive 138 Thousand Practices to Low Regions of TRL Development Index

In 2018, according to the SEGE-2011 index, the Bank extended loans and Total grants amounting to TRL 965.433 Thousand to the provinces with the lowest level of development in the low development group. 7.645 Thousand TRL 30 31

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Ministry of Environment and Urbanization Ministry with 3,000 Km Bike and Works made under the Protocols 3,000 Km Green Walkway, T.C. Ministry of Environment and urbanism and Iller Bank A.S. within the framework of the 30 Km Eco-Friendly Street and “protocol for supporting infrastructure projects” signed on 8 August 2014, municipalities In this context, a total of TRL 60,000 M2 Noise Barrier with a population of more than 200,000 include all kinds of projects and/or feasibility stud- 56.951 thousand has been Support Project ies related to drinking water, wastewater, deep sea discharge, solid waste, rainwater facil- spent from the Ministry for 368 T.C Ministry of Environment and Urbaniza- ities from infrastructure projects. work and TRL 28.475 thousand tion and Iller Bank Inc. in cooperation with; 50 % of the costs of the infrastructure projects that will be conducted within the framework from iller Bank and TRL 273 Within the scope of the 100 Days Action of the protocol will be financed (including all kinds of work increases) by from the circu- thousand of these works have Plan, for the creation of cities with hab- lating capital of the Ministry, and the remaining 50% will be financed by the grant-in-aids been completed and 20 projects itable environment and identity; protocol allocated from the Bank’s annual net profit. Survey works, tender and all kinds of work and are continuing. for the construction of bicycle path, green Rize (Center) Municipality operations upon the completion of tender, project supervision, and project approval pro- walking path, environmentally friendly Cycling Road Project (9.8 cesses pertaining to the projects and/or feasibility studies for potable water, wastewater, street and noise barrier for the purpose of treatment facility, marine outfall, deep sea discharge solid waste, rainwater plants will be reducing the effects of traffic pollution and km), Mediterranean (Mersin) conducted by our Bank. noise exposure, protecting the physical and Municipality Cycling Road mental health, improving the quality of life Project (6.7 km), Pendik and raising the awareness of environmen- (Istanbul) Municipality The Protocol on Supporting the Urban tal protection as well as contributing to the Cycling Road Project (50 km), aesthetics of the city. Signed in 2018. Regulations of Local Administrations Tomarza (Kayseri) Municipality (KENT-DES) Cycling Road Project (4.4 km) T.C Ministry of Environment and Urban- WORKS ON THE 100-DAY approved by the commission. ization and Iller Bank Inc. The Protocol on ACTION PLAN Supporting Urban Regulations of Local Gov- Commission studies on ernments regarding the environmental and 5,000 Village Mansion Work applications are in progress. infrastructure regulation works that will af- In the Action Table declared by the Republic fect urban life positively, especially in East- of Turkey Ministry of Environment and Ur- ern and Southeastern Anatolia, has been banization; within the scope of the Günlük signed on 21 October 2016 and a total of 100-Day Execution Program, there is the 59 Municipalities have been determined in activity of 00 Construction of 5.000 Village Van Millet Garden accordance with the protocol and the total Houses to be completed in 5 years by Iller Project Support Protocol financing cost is TRL 95.950 Thousand (50% Bank, within the scope of this activity, in line of the Ministry and 50% of the Bank will be 75 applications were made to Van Province, province of Van province of with the needs of our villages, it is planned covered by the Bank.) our Bank in this scope. Akköprü 17 island 67 which belongs to to design and construct 1,000 village mul- the Treasury owned by the Metropolitan 59 municipalities within the scope of KENT- ti-purpose “Village Mansions ından from Municipality of Van as an asphalt const- DES; A total of 109 works have been ten- Iller Bank’s resources since 2019. ruction site used 63,819 m² area and also dered, 72 of which are for road construction 3 Qty. It was requested from Governorships on 16 25 Qty. assigned to the General Directorate of and 37 for park construction. The total con- August 2018 that the villages of 51 provin- Eco- Forestry afforestation area 17 island 72 tract value of 109 road / park construction Green Walk cial boundaries within the boundaries of the (approx. 45 km) Friendly Street number of parcels to ensure the project works is 137.195 thousand, and a total of province were sent to our Bank by making integrity Van Millet In order to determi- 85.761 Thousand TRL arrears have been the need and situation determinations and ne the level of mutual responsibility and arranged. the confirmation of the data obtained from cooperation for the Project (including Bi- All the progress payments made within the the Governorates was requested from our cycle Road and Hiking Road), the Ministry scope of this protocol have been made and Regional Directorates. A commission has 1 Qty. 46 Qty. of Environment and Urbanization and TRL 42.312 Thousand of TRL 85.761 Thou- been established with the purpose of car- Iller Bank Inc. Van Millet Bahçesi Project Noise Bicycle Path sand has been paid by the Ministry of Envi- rying out the activities to the Directorate Barrier (Approx. 130 km) Support Protocol 8 was signed on 19 No- ronment and Urbanization and TRL 43.449 General. Works on village mansion works vember 2018. Studies are ongoing under Thousand by Iller Bankası Inc. funded by. are ongoing. the protocol. 32 33

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Resource Development Activities and Silopi (Şırnak) Karşıyaka neighborhood Preparation of the reserve Urban Transformation Projects with the Urban Renewal Project to be implemented in the construction field; Şırnak, Silopi district of Karşıyaka neigh- In accordance with our Bank’s Law No. The following activities are carried out borhood Künzür is owned and involving the 6107, the activities of our Bank have been within the scope of Iller Bank’s resource ownership of Iller Bank, in 2017 the Minis- added to “Implement or make applications development activities; try of Environment and transferred to the treasury to be allocated to the Ministry of with profitable real estate investment proj- Revenue Sharing Urbanism 302 islands 4, 5, 21 and 25. With ects so as not to enter into any obligations Tenders for Land Sale: involving parcels preparation work scope and conditional obligations for the project of urban transformation projects to be im- resource to provide funds to the bank”. In the real estates owned or in the pos- urban transformation projects within the plemented in approximately 28.1 hectares; session of Iller Bank, Iller Bank prepares scope of the protocols made and makes Within this scope, with the resource de- contracts and specifications for revenue applications within the scope of the Tender Decision of the Board of Directors, the Bank velopment activities, it is aimed to produce sharing tenders and realizes contracts and Regulation of the Sales, Leasing and Land has signed the contract on November 1, brand projects in order to strengthen the executes the contract within the scope of Sale Equivalence Revenue Sharing of Iller 2016. Area 516 is located in the residen- “İLBANK” brand in “superstructure” in- Tender Regulation for Sale, Lease and Sale Bank. tial housing consists of 3 types. Type1 54 vestments besides “infrastructure invest- of Land. blocks, 39 block type 2, type 3 is designed ments” in the field of activity of our Bank İzmir (Karabağlar) Declared the to be 42 blocks. Type 1 residential block in application to be carried out in Risky Areas and thus to serve our partners more Projects Performed with In 2018, it was planned to the 2, 4 residential block in type 2, type 3 is strongly. For this purpose, our Bank de- Municipalities, Public and Private use TRL 75 million resources located in a residential block of 6 residential İzmir (Karabağlar) Declared Risky Areas velops jointly profit-oriented real estate Organizations and Individuals: Related to the Application to be executed for resource development units. Ministry of Environmental Planning, projects on its own and on the municipali- Ministry December 2nd 2016 and 46 427 in about 101 hectares; Ministry of Envi- We carry out protocols with the aim of activities and TRL 468 million ties of municipalities and special provincial carrying out studies to develop a common numbered instructions in accordance with ronment and Urbanization Ministry with expenditures were realized. administrations, other public and private real estate project on properties owned by the contract pertaining to these reserve ar- Provincial Bank Inc between the protocol institutions and individual. Iller Bank, Municipalities, public institutions eas pursuant to Article 12 application proj- was signed on December 16, 2016. 6 The contract was signed in December 2017 In this context, in accordance with the rel- and real persons / legal entities. Following ects (architectural, structural, mechanical, Iller Bank, within which are owned and on business. Within the scope of work; evant legislation, olup land-based revenue the planning studies, the said immovables electrical projects with animation-render- technical consulting services in exchange 11334/1 parcel of 6 blocks, 4 blocks parcel sharing method ile has the qualification to are tendered by means of revenue sharing ing) was approved on December 14, 2016. for the Bank on transfer as properties ac- 11336/1, 11339/1 total of 20 residential be evaluated by the Iller Bank also deemed for the sale of the land, and the obtained quired in the projects as they deem appro- blocks including 10 blocks in the plot, 10 appropriate by the Municipality real estate; revenue is shared with the project stake- holders. priate and will see the Bank’s appropriate parcel 11334/1 and 11336/1 15 work- Purchase by bank, rate and sales direct sales, is engaged in place workplace workplace were arranged Real Estate Sales: real estate investment transactions with in a total of 25 plots, social facilities, in- Implementing co-implementation with Iller Bank carries out real estate purchase, revenue sharing and in return method. door parking lots, there are ornamental and municipalities by using the land-based sale, exchange, leasing and renting activi- swimming pools. Preliminary project is con- income sharing method on these, Within this context, revenue of TRL ties within the scope of the related legisla- ditionally approved on June 5, 2017. August 263.313 Thousand was obtained from tion in order to secure funds. 3, 2017 date of the application which has With the options, it is possible to offset the sales transactions in 2018. debts of Municipalities to Iller Bank. been submitted to the Provincial Bank proj- Urban Transformation Projects: Within the scope of the urban transforma- ects related to Presidential approved: In addition, Iller Bank also played an active tion projects carried out with the Ministry Also; “Installation of Floor Easement Deed role in the Urban Transformation Projects Iller Bank is in the field of application de- of Environment and Urbanization, 10 mil- and the Directorate for İzmir Karabağlar and Brand Cities Development Project re- clared within the scope of the Law Con- lion TRL has been transferred to the Bank Disclosure Procedures of the Independent alized under the Law on Transformation cerning Transformation of Disaster Risk by the Ministry in 2013 for the Ağrı Patnos Land Registry Department” delivered rep- of Areas Under Disaster Risk. Within this Areas No 6306 or in the areas declared ur- Urban Transformation Project. In 2018, lication and distribution projects to be ap- scope, Iller Bank transfers both the proj- ban transformation and development area within the scope of Ağrı Patnos Urban proved were made. ects and half of the profit from real estate within the scope of Article 73 of Municipal- Transformation Project, TRL 9.433 Thou- projects to the Ministry Urban Transfor- ity Law No 5393, the Ministry of Environ- sand of expenditure has been made and On 26 November 2018, Mahal Lists and mation Special Account for use in urban ment and Urbanization and / Or authorized the utilization of the allocated resource has Detail Projects were approved and the transformation projects. institutions / organizations, performs the been completed. work was completed. 34 35

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Profile of Credits Provided out of the Equity of Iller Bank Short-Term Loans No. 5779 “Loans for short-term specialized loans given to local Works Carried Out By Municipalities administrations for short-term specialized loans for the shares and Special Provincial Authorities Under distributed to Iller Bank within the framework of the Law on Medium- and Long The Local Government In-vestments Granting of Special Provincial Administrations and Municipal Term Directed Loans Program Budget Tax Revenues to the municipalities and the municipalities Loans on 5- to 10-year terms for various Loans on 5- to 10-year terms for various in their investment programs. projects and facilities related to local govern- projects and facilities related to local gov- Iller Bank ceased to extend short-term credits in 2007 as a mat- ments’ public services which are placed in the ernments’ public services which are placed ter of principle, save for in exceptional situations. However Iller Bank’s investment program by the Ministry of in the Bank’s investment program by the Bank issues letters of guarantee for loans that local governments Development and loans extended since 2005 Cash Support Loans Loans for Materials, Equipment, Ministry of Development and loans extend- obtain from financial institutions other than the ban. When such for infrastructure and superstructure invest- ed since 2005 for infrastructure and super- In addition to loans for investments of Lo- Tools and Supplies and Expropriation administrations default on their installments etc., the bank, in its ments which are included in the bank’s and in structure investments which are included local governments’ investment programs and cal Administrations, Iller Bank has started In order to meet the needs of all kinds of capacity as guarantor, is responsible for making the payments in the bank’s and in local governments’ in- which are carried out by the bank and by local to use the cash support loan for; the Pay- materials, equipment, tools and equipment whenever the beneficiary of the letter so demands. Such pay- vestment programs and which are carried governments either directly or through tenders, ments of severance and indemnity that required by the local administrations in the ments are booked to the local governments’ accounts as “short- out by the bank and by local governments for; sewage, potable water, rail transportation will be paid to the retirement personnel fulfillment of urban services, a total of TRL term loans”. either directly or through tenders, for; systems, road constructions, highway intersec- of the local administrations since 2010, 842.721 Thousand of loans has been pro- In addition, a commission fee is charged once every three months tions, underpass-overpass, urban information the cadre will receive more personnel and vided by Iller Bank in 2018, amounting to Sewage, on the outstanding balances of letters of guarantee issued by the system, urban transformation etc. are used for paying for other corporate debts in 2011, TRL 672.122 Thousand and TRL 169.662 Potable water, bank. These amounts are then charged to local governments’ ac- the performance of the projects in this frame- Local Government cash payments in 2012, Thousand for Expropriations. Rail transportation systems, and the urgent current payments of mu- counts as “short-term credit”. work. Road constructions, nicipalities since 2015, this practice was Highway intersections, continued in 2018. In 2018, Iller Bank extended a Underpass-Overpass, total amount of TRL 672,122 In 2018; TRL 15.340 thousand of notice Renewable Energy Thousand and TRL 169,662 Non-cash Loans Letters of Guarantee Issued for Local Letters of Foreign Currency Guarantee and severance pay, TRL 57.032 thou- City Information System, Governments (Thousand TRL) Provided for Local Administration sand cash, TRL 1.500 thousand current Thousand for Expropriations, As per “The Law on the Payment of Shares Urban Transformation etc. payments, total TRL 73.872 thousand. has totaling TRL 841,784 Thousand. to Special Provincial Administrations and Year Quantity Letter Amount Year Quantity Letter Amount provided cash support loans. are used for the performance of the proj- Municipalities out of the Tax Revenues of the 2008 355 701.275 2008 1 3.102.000 Euro ects in this framework. General Budget” no. 5779, non-cash loans are extended by issuing letters of credits with In year 2018, a total of TRL 8.214.555 thou- 2009 465 1.428.342 2009 1 75.000 US Dollar reference to the estimated amounts calculat- sand was budgeted to be offered as loans ed once the debt installments to the Bank and 2010 1 35.000 US Dollar for Material, Equipment, Vehicles and other 2010 515 314.670 other agencies are deducted out of the shares Requisites in addition to Cash Support Loan 2011 25 2.635.790 US Dollar requests and the projects included in the distributed to local governments by Iller Bank. 2011 501 154.820 investment programs of local governments. In 2018, a total of 252 letters of guarantee 2012 4 66.000 US Dollar 2012 451 421.363 were issued to local governments, 250 of 94 of the construction works included in 2013 - - the investment program of local adminis- which were worth TRL 1,587,690 Thousand, 2013 281 327.786 trations, 344 other infrastructure, 21 sew- 1 of USD 855 Thousand and 1 of Euro 7,350 2014 - - erage, 74 municipalities and 2 solid waste Thousand. Previous years held in letters of 2014 199 296.441 sectors, 535 of them with a total of 535 guarantee a letter of guarantee in the amount 2015 - - work, 2 maps, 3 water projects, 4 sewage 2015 142 210.502 of one thousand Turkish lira from TRL 25.467 2016 - - project, 3 pieces of Drinking Water Drilling, Thousand in the year 2018 has been returned. 2016 170 199.944 4 Geotechnical, 2 CBS, 23 units of renew- The commission rate applied to the letters of 2017 - - able energy, 1 wastewater treatment-sea guarantee was determined as 2% with the de- 2017 140 269.429 discharge-solid waste and 2 superstruc- 854.999,46 US Dollar cision of the Board of Directors of the Bank of 2018 2 ture projects including a total of 44 projects Provinces No. 10/271 dated April 15, 2015; 2018 250 1.587.690 7.350.000 Euro including 579 work It has been completed. 36 37

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

World Bank Sustainable Cities Project-2

Within the scope of “Sustainable Cities Proje- Relations with International ct-2”, the loan agreement amounting to EUR World Bank Loan-Municipal Financial Institutions Services Project (II) 73.500 thousand was signed between Iller Bank and the World Bank on 16 May 2018 Negotiations among the T.R. Prime Ministry and the guarantee agreement was signed Undersecretariat of Treasury, Ministry of between the Treasury of the Prime Ministry Development and the World Bank that were and the World Bank on 16 May 2018. In parallel to the Bank’s vision “to be an international investment bank which begun in January 2008 to discuss additional financing for the Municipal Services under In this context, EUR 15,500 Thousand for takes part in modern urban development and whose service quality is proven”, its the Country Partnership Strategy (CPS) fi- the financing of Muğla Metropolitan Muni- priority strategic objectives include intensification of existing cooperations and nancing program that serves as the frame- cipality Water and Sewerage Administrati- work for the financial and technical support World Bank Sustainable Cities on (MUSKİ) General Directorate and Muğla which the World Bank is providing in 2008- contacts with international financial institutions operating in its sector. Project-1 Wastewater Project-2 and Antalya Metro- 2011 were completed. politan Municipality Water and Wastewa- On 29 June 2010, a loan agreement in the In addition to water, waste water, solid waste ter Administration (ASAT) and Antalya Sus- amount of EUR 178.200 thousand was sectors covered in previous projects financed tainable Water and Wastewater Project. signed between Iller Bank and the World by the World Bank, this project covers trans- for the financing of the Bank, amounting portation, energy efficiency, and comprehen- Another priority is to ensure that the Bank becomes a player outside the country. In Bank within the framework of the Municipal to EUR 73.500 Thousand, of which EUR 58 sive city development zoning plans. Regarding this respect, it is aimed to establish the infrastructure required to contribute to the Services Project (II) (Additional Financing). A million was signed on 17 May 2018. development of projects in countries Turkey engages in crucial bilateral cooperation guarantee agreement covering the loan has the sustainable Cities Project, the sustainabili- efforts, making use of the experience commanded by Iller Bank, as well as the ser- also been signed by the R.T. Prime Ministry ty of the three basic elements of international Sustainable City Project Component vices it provides. Undersecretariat of Treasury and the World experience in the financial and social and envi- A “Sustainable City Planning and Bank on the same date. Secondary loan ronment sustainability is planned to be imple- management systems” Grant In 2018, Iller Bank continued to channel the long-term external funds which it secures agreements were signed with the munic- mented in Turkey. under collaborations that it has developed with international financial institutions in- ipalities of Kayseri (Metropolitan), Denizli Sustainability Environmental having three cluding the World Bank, the Japan International Cooperation Agency (JICA), and the Project for Sustainable Cities “loan agreement (Merkez), Kırşehir (Merkez) and Beypazarı essential elements, in the framework of the European Investment Bank (EIB) to meet the investment needs of local governments. amounting to EUR 121.200 thousand was (Ankara) and with the ASAT (Antalya), MES- signed on 26 December 2016 by İller Bankası implementation in Turkey of international Kİ (Mersin) and İSKİ (Istanbul Water and A.Ş. and the World Bank, and a Guarantee experience in the financial and social sus- Sewage Administration) authorities under Agreement was signed between the Under- tainability, “Sustainable Cities Project on” World Bank Loan-Municipal Project (I) the Municipal Services Project (II). secretary of Treasury and the World Bank on between the European Union and the World In year 2012, İSKİ (Istanbul Water and Sew- the same date. Bank signed on March 2, 2017 25 Million of Efforts were started in 2003 jointly with Construction of water, wastewater and sol- 98,40 % (amounting to EUR 206.239 thou- age Administration) authorities terminated In this frame, 67.450 Thousand Euros for the Euro Management Agreement was signed. the T.C. Prime Ministry Undersecretariat of id waste projects The amount of 212,900 sand) of the Municipal Services Project the secondary loan agreement with a view to financing of Muğla Metropolitan Municipality Treasury and the Ministry of Development thousand Euro will be used for the loan. loan had been used. Loan had been closed However, for a remaining portion of the World paying for Akfırat (Tuzla) Waste Water Basin General Directorate of Water and Sewerage to develop the Municipal Services Projects and the World Bank signed a Loan Agree- as of 31 December 2012. However, in or- Bank’s management fee of 7.5% (EUR 1,875 Tunnel, Collector and System Project from Administration (MUSKI) and Muğla Waste- for utilizing the World Bank loan, as a way ment on 8 February 2006 and a Guarantee der to make the payments for works, deliv- thousand), a grant agreement amounting to its own sources and the request in question water Project, and Sub-credit agreements of securing international financing for im- Agreement was signed between the Prime eries and services conducted till the closing EUR 23,125 thousand was signed between was agreed to by the Bank. The secondary amounting to EUR 121.200 thousand, of Ministry Undersecretariat of Treasury and date, the prohect expenditures continued ILBANK and the World Bank on September provements in our country’s environmental loan cancelled by İSKİ was thn extended to which 53.750 thousand Euros for the financ- the World Bank. until 30 April 2013 and the used had been infrastructure. Denizli Water and Sewage Administration ing of Denizli Metropolitan Municipality Water 28, 2017 and allocated to our Bank. Within completed on the same date. (DESKİ) as of 31 December 2014. the scope of the Sustainable City Planning With this project; Within the framework of the project, sec- and Sewage Administration (DESKİ) Gen- ondary agreements totalling EUR 212.096 and Management Systems Project, ten (10) As of 31 December 2018, 94.13% of total eral Directorate and Denizli Drinking Water, Carrying out investments needed thousand were signed with the munici- credit amounts (EUR 167.733 thousand) Wastewater and Stormwater Improvement Metropolitan Municipality, which is the final in the areas of water, wastewater palities of Muğla (Merkez), Ödemiş (İzmir), were used. Projects were signed on 28 December 2016. beneficiary, is planning to use this grant. andsolid waste categories Bergama (İzmir), Denizli ( Merkez), Polatlı (Ankara), Gelibolu (Çanakkale), Kütahya The loan has been closed as of November As of 31 December 2018, 0,40% of the total As of 31 December 2018, 0.58% of the to- Creating a sustainable financing (Merkez), Ilıca (Manavgat-Antalya), El- 30, 2016 and project expenditures will con- loan amount (EUR 482 thousand) has been tal amount of the grant has been used. The mechanisms bistan (Kahramanmaraş) and with the tinue until March 31, 2017, in order to be used. The loan amount used in the period of amount of the grant used in the period of Strengthening of Iller Banks’s MESKI (Mersin Water and Sewage Admin- able to make payments for work, deliveries 01 January 2018 - 31 December 2018 is 482 January 1, 2018 - December 31, 2018 is EUR capabilities institutionally istration) and ASAT (Antalya) authorities. and services until the closing date. Thousand Euro (0.40%). 133 Thousand (0.58%). 38 39

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Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Credits for Municipality Contribution Shares within the framework of European Union Instrument for Pre-Accession Assistance (IPA)

Japan International Cooperation Municipality contribution shares amounting Agency (JICA), Local Governments to approximately 9% of the investment fig- Infrastructure Development Project ure for municipal environment infrastructure projects, where EU Instrument for Pre-Acces- Water of local governments where the Financial Assistance to Refugees Islamic Development Ban Loan Syrians under temporary protection in our sion Assistance (IPA) Operational Program on in Turkey (FRIT-II) Project and for Urban Transportation Projects country, in order to meet the demand for Environment (2007-2013) Budget grants are used, can be paid for through Iller Bank loans, wastewater and solid waste projects in Related Studies Within the scope of “Urban Transporta- should the grant recipient municipalities re- the sector, May 15, 2015 Japan Interna- Financial Assistance to Refugees in Turkey tion Projects”, the Framework Agreement quest so. The EU projects where municipality tional Cooperation Agency (JICA) and the (FRIT-II) covered (Water, Wastewater, Solid with the amount of 150 million Euros was shares were paid through Iller Bank loans, are Provincial Bank Inc 45 billion in Japanese Waste, Recreation and Technical Assis- signed between Iller Bank and Islamic De- monitored by the Headquarters and Provin- yen (EUR 337.446 thousand) amounting tance), including “Municipal Infrastructure velopment Bank on 29 August 2016 in cial Organizations of the Bank. Japan International Cooperation Treasury guaranteed “Local Government Sector” allocated EUR 380 million in the order to provide local governments with Agency (JICA) Loan – Municipal Sewer Infrastructure Development Project” is In this context, the Bank’s loans are utilized orientation meeting held in Brussels on financing of urban transportation projects the Loan Agreement is signed, the scope System and Waste Water Treatment European Investment Bank (EIB) by relevant municipalities for Amasya Water November 30, 2018 to It was. and the Guarantee Agreement was signed Plants Development Project of the said project on December 30, 2015 Loan- Urban Infrastructure Projects and Waste Water Project, Diyarbakır Water between the Undersecretary of Treasury Gaziantep Water and Sewerage Admin- and Waste Water Project, Erdemli (Mersin) On 13 November 2018, an information and the Islamic Development Bank on the istration (GASKİ) with 11 350 million JPY, In order to further collaboration in the field Water and Waste Water Project, Dogu- meeting was held with the international same date. With a view to ensuring the widespread Hatay Water and Sewerage Administration of water, waste water and solid waste pri- bayazıt (Ağrı) Potable Water Project, Ceyhan financial institutions that will be the in- use of sewage and waste water treatment In this context, a sub-financing agreement (HATS) with 5,150 million JPY, Istanbul Wa- ority sectors within the framework of Tur- (Adana) Water and Waste Water Project, termediary for the use of this fund. The systems in Turkey and improving the wa- was signed on 31 August 2016 amounting ter and Sewerage Administration (KASKİ) key’s accession to the European Union (EU), Manavgat (Antalya) Water and Waste Wa- deadline for the declaration of intent for ter quality in the receptive environments, to 39.588 Thousand EUR so as to finance and 3,700 million JPY, Istanbul Water and a 150 million EUR worth Loan Agre ement ter Project, Polatlı (Ankara) Water and Waste international financial institutions is 15 the “Municipal Sewer System and Waste the project “Antalya 2nd Stage Square- Sewerage Administration (ASKI) and 4,400 on “Urban Infrastructure Projects” with Water Project, Nizip (Gaziantep) Water and March 2019. In the second half of 2019, it Water Treatment Plants Development Airport- Expo Rail System Vehicle Pur- million JPY, with Kilis Municipality of 2,000 Treasury Guarantee was signed on 28 June Waste Water Project, Merzifon (Amasya) is planned to sign the Contribution Agree- Project” Credit Agreement at an amount of chase and Additional Construction Works”. million JPY, Sanliurfa Water and Sewerage 2012, by and between the Euro pean In- Waste Water Project, Kütahya Atıksu Wa- ment with the international financial in- 12,784,000 thousand Japanese Yen (EUR Administration (Suski) and 6,000 million vestment (EIB) and Iller Bank. ter and Waste Water Project, Balıkesir Solid stitutions to be determined. Work on the As of 31.12.2018, 67.67% (EUR 26.790 95.865 thousand) was signed under Trea- JPY Malatya Water and Sewerage adminis- Waste Management Project, Bulancak (Gire- project list continues simultaneously. Thousand) of the total financing amount sury guarantee on 22 June, 2011 by and Within the scope of credit; A sub-loan tration (MAS’s) with 6,250 million JPY, with sun) Waste Water Project, Siverek (Sanlıurfa) was used in the scope of Sub-Financing between the Bank and Japan International agreement amounting to EUR 11,500 Osmaniye Municipality of 2,700 million Waste Water Project, Akçaabat (Trabzon) Agreement signed with Antalya Metropol- Cooperation Agency (JICA), for the improve- thousand was signed with the Municipality JPY, Gaziantep Metropolitan Municipali- Potable Water and Waste Water Project, Er- itan Municipality. The amount of financ- ment of sewage and waste water treat- of Burdur and EUR 6 million with the Munic- European Investment Bank (EIB) ty, with 900 million JPY and signed lower cis (Van) Potable Water Construction Project, ing used in the period between January ment systems of medium-sized municipali- ipality of Yerköy. As of 31 December 2018, Loan II-Urban Infrastructure Projects II credit agreements are 2,550 million JPY in Çarsamba (Samsun) Waste Water Project, 1, 2018 and December 31, 2018 is EUR ties. Within the framework of the said credit no loan was utilized. Selection and prepara- the amount of Adiyaman Municipality and Soma (Manisa) Waste Water Project, Adıya- In order to finance the priority investment 4,943 Thousand. agreement, 9 secondary credit agreements tion of the projects to be financed by using was put into practice. man Waste Water Treatment Plant Project, projects of the local governments in the ur- were signed and put into implementation. the EIB loan continues. Seydisehir (Konya) Waste Water Treatment ban transport, water, wastewa ter and solid Plant Project, Silvan (Diyarbakır) Potable waste sectors, to improve public health and Water Project, Sorgun (Yozgat) Waste Water the environment and to contribute to the As of 31 December 2018, total As of 31 December 2018, total Within the scope of credit; Treatment Plant Project, and Kahraman- implementation of the EU acquis in Turkey in the scope of Urban Transportation and amount of TRL 10,623,493 amount of TRL 12,706,783 A sub-loan agreement maras Waste Water Treatment Plant Project. Environmental Loan, a 250 million EUR Thousand (TRL 270,722 Thousand (TRL 481,402 amounting to EUR 11,500 Within the scope of these loans; A total of worth Loan Agreement with the guarantee Thousand) has been used. Thousand) has been used. thousand was signed with the TRL 128.022 Thousand of loans has been by Prime Ministry , Treasury Undersecretar- The loan amount used for the The loan amount used for the Municipality of Burdur and EUR allocated by Iller Bank for 22 municipal iat was signed on 6 October 2015, by and environmental infrastructure projects and period between 1 January 2018 period between 1 January 2018 6 million with the Municipality between the European Investment (EIB) as of 31 December 2018, the total loan and 31 December 2018 is TRL and 31 December 2018 is TRL of Yerköy. As of 31 December and Iller Bank. The selection and prepara- amount used is TRL 101.617 Thousand. tions for the projects to be financed through 1,246,919 Thousand (TRL 6.743.844 Thousand (TRL 2018, no loan was utilized. During the period between 1 January 2018 EIB loans is in progress. 55,346 Thousand). 288.602 Thousand). and 31 December 2018, TRL 1.093 Thou- sand loan utilization was realized. 40 41

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Categorical Breakdown of Works Completed in 2019 These investments are projected to be financed as follows,

Source Grant SUKAP TRL 3.800 Million TRL 1.700 Million TRL 848.011 Bank of Resources of TRL 836.511 Thousand, Thousand Bank Profit TRL 680 Million, from funds to be allocated Equalization Grant for from repayments from capital from the General Budget, TRL 5 Million, TRL 1.528.011 Urban Infrastructure on loan principals, collection, SUKAP and Urban Infrastructure Thousand, TRL 11.500 Thousand, Equalization Allowance)

Resource External It is planned to TRL 1.898.009 TRL 2.887.375 TRL 495 Million 430 Development Loan of be a total of Thousand Thousand Thousand Activities from from Resource from external sources from interests and other TRL 1.898.009 TRL 750 TRL 9.176.020 Development and Urban (World Bank, JICA and EIB) collections, Thousand Million Thousand Transformation Activities.

(Allocation does not include loans made from the previous year.)

ILLER BANK INC. 2019 - SUMMARY OF INVESTMENT PROGRAM FOR 2021 (THOUSAND TRL) TRL 1.649.651 Thousand corresponding to 57 works will be carried out under End of 2018 2019 Investment the Bank’s investment program, whereas other works will be carried out under Project Amount Number of Sector Cumulative Spending Non-Total Projects Foreign the investment program of municipalities and special provincial authorities. Total Foreign Foreign Credits Total Total Grant Other Credits Credits

Settlement-Urbanization 2 - 186 - 11 - 175 - -

Energy 1 50.421 50.421 - - - - 5.042 5.042

Drinking water 17 1.691.197 4.171.582 - 707.366 749.184 7.250 284.551 400.815

Sewage 26 3.354.844 8.088.199 334.127 2.867.725 551.204 19.000 586.780 642.144

Municipal Services 5 590.656 687.898 - - - - 40.318 46.667 (Solid Waste)

Transportation 6 2.023.863 2.211.960 101.612 101.612 - - 554.983 554.983 (Urban Transportation)

Total 57 7.710.981 15.210.246 435.739 3.676.714 1.300.388 26.425 1.471.674 1.649.651

(*) The loans included in the Total column in the loans provided by external credit institutions (JICA - EIB) are included in the VAT to be paid by the local administrations. 42 43

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Statutory Shares Transferred to Local Governments

Allotments Made to Municipalities Shares Distributed to Special Provincial Administrations Under Laws nr. 5779 on “Allotments of General Budget Revenues to be Allocated to Special Provincial Authorities and Municipalities”, and According to the Law No. 5779 on esi Share of General Budget Tax Revenues to Provincial on the Amendment of Certain Laws and Decrees with the Force ofLaw”(Lawno.5237 until 1 March 1981 and subsequently by Law no. Special Administrations and Municipalities ve transferred to Iller Bank and 2380 until 15 August 2008), Iller Bank has, based on population and development index criteria, been required to distribute;

Municipalities other Metropolitan district 50% 10% 10% 15% 15% than Metropolitan municipalities According to the 1,50 4,50 According to According to According to number According to rural Development Index of population, land area, of villages, population, the provinces,

The Amount of the Shares by Years is shown in the Table below. According to the Amount of 0.50% of the Shares Distributed to Special Provincial Administrations According to Years, is shown in the Table below.

Municipal Shares Transferred to Iller Bank Broken Down By Year (Thousand TRL) Amounts of Special Provincial Administration Allotments Transferred to Iller Bank Broken Down by Year (Thosuand TRL)

Years Transferred Municipal Shares Distributed During the Year Carried Forward to the Next Year Yıllar Shares of Provincial Special Administrations Distributed During the Year Carried Forward to the Next Year

1948-2002 7.790.701 7.457.351 333.350 1981 - 2002 1.464.160 1.401.935 62.225

2003 2.920.323 2.970.453 283.220 2003 636.372 635.156 63.441

2004 4.496.119 4.237.926 541.413 2004 853.010 815.399 101.052

2005 5.287.598 5.261.485 567.527 2005 987.286 982.417 105.921

2006 6.247.598 6.171.950 643.174 2006 1.172.625 1.158.583 119.963

2007 7.048.162 6.885.751 805.586 2007 1.315.764 1.285.351 150.376

2008 8.368.934 8.331.671 842.849 2008 1.673.120 1.642.344 181.152

2009 8.854.892 8.890.731 807.010 2009 1.908.628 1.916.314 173.466

2010 11.271.002 10.892.290 1.185.722 2010 2.423.822 2.342.414 254.874

2011 13.242.202 13.037.973 1.389.951 2011 2.847.457 2.803.159 299.172

2012 14.441.742 14.253.326 1.578.367 2012 3.104.434 3.064.338 339.268

2013 16.908.947 16.716.796 1.770.518 2013 3.635.595 3.594.287 380.576

2014 19.518.799 19.184.212 2.105.105 2014 2.100.669 2.305.820 175.425

2015 23.734.206 23.474.843 2.364.468 2015 1.977.972 1.956.358 197.039

2016 26.721.739 25.821.952 3.264.255 2016 2.226.821 2.151.841 272.019

2017 31.095.285 30.857.214 3.502.326 2017 2.591.271 2.571.430 291.860

2018 36.635.518 36.062.135 4.075.709 2018 3.052.972 3.005.190 339.642

Total 244.583.767 240.508.059 Total 33.971.978 33.632.336

In 2018, the transfer balance to the following year is the amount that is sent from the Treasury as a share in November at the end of December and will be distributed to the municipalities (*)The balance carried forward to the next year across the year 2018 represents amounts received from the Treasury as “November” allotments as of end-December. These will be apportio- in accordance with the Law No. 5779 until 10 January 2019. ned among relevant Special Provincial Administrations as per the principles of Law no. 5779 on 10 January 2019. In 2018, TRL 143,607,48 of the total amount of TRL 36,635,518 Thousand required by the Law No. 5779 is the population differences of the local administrations which have been added to the population of the various municipalities in 2017 and converted into the municipality status.

Accruals, Remittances and Deductions to Municipalities in 2018 (Thousand TRL) Accrual, Remittance and Deductions to Special Administrations in 2018 (Thousand TRL)

Accrual Transfer Interruption Accrual Transfer Interruption

2018 36.062.135 30.936.249 5.125.886 2018 3.005.189 2.822.615 182.574 44 45

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Debts Subjected to Reconciliation

Under the Provisional Article 3 of the Met- In accordance with Article 7 of the Law No. ropolitan Municipalities Act (Statute 5216) 5779, it is notified by the relevant insti- and the Provisional Article 5 of the Munici- tutions and cuts from the shares of local palities Act (Statute 5393), a reconciliation governments distributed by Iller Bank. The payer institutions related commission was set up and charged with These shares are transferred to the rela- to the debts within the scope “clearing, offsetting, and deducting” unpa- ted institutions according to the Council of of the reconciliation, the id obligations owed to public agencies and Ministers Decree No. 2010/238. The payer payments made during the organizations by metropolitan municipali- institutions, the payments made during year and the transfer balances ties and their affiliated organizations, or by the year and the transfer balances of 2019 Debts not Subjected to Reconciliation companies, in which metropolitan or county are shown in the table below. In addition, in of 2019 and the liabilities municipalities control more than a 50% ca- the following table, there are debts which pursuant to the reconciliation The following chart shows the outstanding obligations of municipalities and special provincial authorities reported by Tax Of- pital interest. From 2004 to 2008, the com- are followed within the scope of the recon- pursuant to the provisional fice, Social Insurance Institution, State Retirement Fund and various agencies subject to Law no. 6183, which are required to mission reported such debt reconciliations ciliation pursuant to the provisional article article 2 of the Law no. 6552. be deducted from the allotments distributed by Iller Bank to local governments under Article 7 of Law no. 5779, and paid to for 2,464 municipalities to Iller Bank. 2 of Law No. 6552. relevant agencies as per the Council of Ministers Decree 2010/238.

Debts Subjected to Reconciliation Debts not Subjected to Reconciliation (THOUSAND TRL)

Carried Forward to Carried Forward to Payable to Debited in 2018 Cancelled or Paid (*) Carried Forward to 2019 Payable to Debited in 2018 Cancelled or Paid (*) Carried Forward to 2019 2018 2018

TEDAS 116.567 2.011 13.722 104.856 Tax Offices 154.068 260.649 166.555 248.162

Social Insurance Institution (SSK) 458.661 - 52.176 406.485 Tax Offices (6736-7020-7143 S.K.) 5.237.365 1.339.827 752.572 5.824.620

Social Security Institution (State Retirement Fund) (SGK) 32.650 - 12.442 20.208 Social Insurance Institution (S.S.K.) 47.623 399.868 337.297 110.194

Tuberculosis Association 14.239 92 482 13.849 Social Security Institution (SGK) (6736-7020-7143 S.K.) 6.289.529 3.309.458 1.386.249 8.212.738 Provincial Directorate of Youth and Sports 3.624 32 165 3.491 SGK (State Retirement Fund) 65.079 540.733 592.421 13.391 Ministry of Interior Darülaceze (Alms House) 492 91 482 101 SGK (State Retirement Fund) 6736-7020-7143 S.K.) 2.848.934 646.487 327.089 3.168.332 Ministry of Environment and Urbanization 57 4 22 39 Special Provincial Administrations (Real Estate Tax) 8.714 32 234 8.512 Municipalities 922 - - 922 Social Assistance and Solidarity Fund 951 91 118 924 Special Provincial Administrations 40.723 189 1.757 39.155 Other Institutions (Configuration) 74.659 726.853 32.539 768.973 Metropolitan Municipalities 220.387 1.880 17.063 205.204 Immovable Culture Tax Contributions 313.681 470.842 363.438 421.085 Affiliated Agencies 34.371 1.232 4.965 30.638 Association of Municipalities 89.655 59.076 45.496 103.235 Association of Municipalities 4.588 70 220 4.438

Ministry of Finance 415.272 2.712 25.033 392.951 Other Institutions 293.104 196.416 131.574 357.946

Undersecretariat of Treasury 170.197 4.446 23.585 151.058 Development Agencies 257.829 193.529 67.638 383.720

Finance (Law No. 6552) 128.500 6.095 17.296 117.299 Medical Institutions 3.309 873 910 3.272

Social Insurance Institution (SSK Law No. 6552) 137.758 23.429 40.176 121.011 Association of Municipalities of Turkey 30.772 66.042 91.940 4.874

Social Insurance Institution (State Retirement Fund SSK Law No. 6552) 53.626 162.636 180.071 36.191 General Lighting Expense 44.675 274.702 293.107 26.270

Total 1.832.634 204.919 389.657 1.647.896 Total 15.759.947 8.485.478 4.589.177 19.656.248

(*) Reasons for the increase in debt / receivable columns of the Non-Compromise and Reconciliation debts in 2018: - Debt updates as required by the law numbered 6736-7020-7143 announced by public institutions and organizations; refund of deductions to local governments - Return of the deductions made to the local authorities in accordance with the Decree of the President published in the Official Gazette dated 23.11.2018 / 30604, - our bank account is Turkey Union of Municipalities of the Metropolitan Municipality and the Ministry of Finance Treasury dues to be collected from the General Directorate cancellation of our registration is required, 46 47

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual ActivitiesThe capital of Emlak Konut GYO located in İstanbul is TRL 3.800 Million, Iller Bank’s stake in SUBSIDIARIES the company is 0.000032152%, amounts to 60,284.

Iller Bank’s equity stakes in NİĞBAŞ and Emlak Konut REIT are each less than 10% and are recognized in the “Financial assets available-for-sale” account in the books and the Financial Statements.

Niğbaş Niğde Concrete Industry and Trade Inc. (NİĞBAŞ)

In 1976, concrete and steel poles, concrete pipes, concrete sleepers, Flume, fiber ce- ment and coloured tiles, asbestos cement pipe, prefabricated building elements of the manufacture, sale, transportation, and erection activities established in Niğde- Niğbaş Inc. Iller bank by the decision of the board of Directors of the bank and the 6/128 of 21 February 2013 date of the shares, Iller Bank’s sales, Rentals, and land for the sale of floor revenue sharing money under the provisions of the procurement Regulations, Borsa Istanbul on the day of the sale of shares traded sales and sales not to be below the average sales value Emlak Konut with regard to the conduct of operations of the General Directorate of the bank is Gayrimenkul Yatırım authorized and public investment Inc. by opening an account Niğbaş Inc. shares of Ortaklıgı Inc. Bank of provinces, Borsa Istanbul was opened for circulation on 21 May 2013. (Emlak Konut REIT) The board of Directors of Bank of provinc- es To 21 February 2013 date 18 January The capital of Emlak Konut GYO located in 2019 date and pursuant to the decision of İstanbul is TRL 3.800 Million, Iller Bank’s the headquarters of the authority 6/128 stake in the company is 0.000032152%, No. 6249 with Niğbaş Inc. owned by Iller amounts to 60,284. bank shares 503.355 pieces were sold. 48 49

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Iller Bank currently holds TRL 947 thou- Inventory Holdings (Thousand TRL) Other Activities Carried Out By Ilbank sand worth of supplies in stock to meet Type of Material Amount the needs of local governments and of the Materials in Stock 361 bank itself. Of this total, TRL 361 thousand In the early years after Iller Bank was set For many years it was the practice for Iller PVC Pipes 361 up, materials, machinery, tools, and other Bank to procure and stock the materials The amount of the material consists of goods that were acquired in previous years, are being held in stock, and Total 74 supplies required for the potable water and required for local governments’ invest- amounting to TRL 841.784 will be dispensed to municipalities in the Other Materials in Stock 13 sewer systems, mapping, surveying, proj- ments and to use them to meet local gov- Thousand, which was ect development, construction, and drilling ernments’ needs. years ahead as they need them, whereas Drilling Materials 499 delivered to the municipalities services needed by local governments had TRL 511 thousand of it consists of stati- Stock Materials in Warehouse 586 In 2003, the bank began surrendering such in 2018 by using loans or by onery, computer consumables and works- been procured by contractors. Total 947 materials directly to the facilities con- making purchases, All credit hop materials which are in stock for me- However, in view of the gradually growing cerned of local governments rather than Total Inventory Holdings 1.765 materials, machinery, tools eting the Iller Bank’s needs. The following volume of work, the difficulties brought on booking them as inventory first. In 2004, chart shows a breakdown of inventory and equipment purchases by by frequent changes in domestic and foreign the bank began extending credit to local holdings. trade and customs regimes, the fiscal ca- governments so that they could procure its expropriation costs. pacities of local governments while making their own materials, vehicles, tools, equip- large-volume joint procurements, contrac- ment, etc. hemselves. When such credit-fi- tors’ lack of funds, and a desire to procure nanced supplies are to be procured, they better-quality supplies faster and more eco- may be purchased by local governmentsor nomically, it was thought advisable for such (if it has been authorized) by the bank. Village Allotments procurements to be made by the bank. Within the framework of article 19 of the are carried out by special provincial authori- abrogated Law nr. 4759, and article 13, pa- ties; In this respect, Iller Bank allocated TRL In 2018, TRL 33.775 thousand ragraph 3 of the Law nr. 6107 on Iller Bank, 96.643 thousand including income withhol- was ex- tended as grants, The chart below provides information about procurements, which municipalities requested Iller Bank to make in a total of TRL 835.050 thousand in grants ding taxin cash for use in projects in villages were allocated as of end of 2017, out of of its profits for the 2016 and 2017 year. representing an amount including 2007-2018 together with details of transactions whose payments were financed on credit. (Thousand TRL) Iller Bank’s profits as Village Share, for the the carry-over shares from In 2018, TRL 33.775 thousand was ex- execution of technical infrastructure works Amount of Credit Amount of Credit previous years; TRL 106.473 Amount of Credit Amount of Credit Loan Amount of Credit Amount of Credit tended as grants, representing an amount Extended for Extended for Total Amount of such as mapping, zoning planning, potab- Years Extended for Service Extended for Pipe Amount for Extended for Extended for Other thousand, on the other hand, was Heavy-Duty Construction Credit Paid Out including the carry-over shares from previ- Vehicles Pumps Expropriation Office Equipment Materials lewater well drilling, water draw structures, Equipment Materials ous years; TRL 106.473 thousand, on the carried over to year 2019. transmission lines, tank and grid, potable other hand, was carried over to year 2019. 2009 42.119 67.413 40.769 40.812 10.556 - 9.544 211.213 water treatment plant, waste water grid and waste water treatment plant, landfill (By the Law No. 7161) 51% of the annual 2010 83.865 78.893 13.815 72.335 98.754 151 14.309 362.122 for solid waste, solid waste transportation, profit per year according to the 13th of the all kinds of village roads, agricultural irriga- proj Iller Bank on Joint Stock Company in 2011 166.394 153.612 24.684 188.301 123.201 3.758 27.607 687.557 tion, and social infrastructure services such Law No. 6107, urban regeneration practi- as education, health, cultural and administ- ces of local governments, map, zoning plan, 2012 133.370 178.605 12.779 241.195 207.711 2.335 40.514 816.509 rative buildings, parks, playgrounds, green infrastructure and superstructure projects spaces and such, to cover survey project and financing of the construction works of 2013 74.377 176.373 18.348 426.382 199.257 2.794 61.562 959.093 design service procurement, constructi- these projects, getiril Iller Bank Inc. will not on, tools and equipment purchases, with a be allowed to share the share of the villa- 2014 74.377 176.373 18.348 426.382 199.257 2.794 61.562 959.093 view to helping villages develop by increa- ge in accordance with the ve Regulation on sing their revenues. Pursuant to Article 13, the Eligibility of Iller Bank’s Annual Profit kıs 2015 179.097 171.522 4.965 150.023 299.809 481 17.156 823.053 paragraph 3 of Law no.6107 governing Iller accepted by the Bank’s Board of Directors Bankası Inc., which entered into force on in accordance with the provisions of the pay 2016 209.034 237.305 80.915 181.412 350.070 7.681 64.550 1.130.967 08 February, 2011, “51% of the Bank’s net Regulation on the financing of the technical profit for the 2017 year is made available as and social infrastructure services of the vil- 2017 114.960 197.166 69.092 383.763 261.156 6.288 94.804 1.127.229 grants-inaid for financing technical and so- lages carried out by special provincial admi-

2018 39.669 92.380 18.776 484.667 169.662 225 36.405 cial infrastructure services in villages which nistrations. 50 51

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Kalite Yönetim Sistemi

As a result of the studies related to the TSE authorities have approved the 2018 Quality Management System, Iller Bank version of Iller Bank employees and pro- TSE authorities carried out passed the TS EN ISO 9001: 2008 Quali- vided ISO 9001: 2015 Quality Manage- ty Management System Certificate from ment System Certificate to Iller Bank. the II. Supervision Inspection the Turkish Standards Institution (TSE) on on January 15-17, 2019 As a management system approach, Ill- to verify the compliance, 3 December 2013 for the first time to im- er Bank applies risk based process man- plement the quality management system. agement within the scope of TS EN ISO continuity and continuity Surveillance audits were conducted by TSE 9001: 2015. In line with this approach, the of the Iller Bank Quality in 2014 and 2015. In 2016, Document Re- processes and procedures of the Quality Management System with newal and Change of Address was made Management System have been reviewed the requirements of TS EN and the Quality Management System cer- Aid and Grants and the processes have been redefined to ISO 9001: 2015 standard. tificate of İller Bankası was renewed by ensure that Iller Bank adapts to the pro- TSE on November 15, 2016. cess-based business flow diagrams. With In year 2018, Bank provided in grans-and- the change of processes, necessary re- aids in accordance with the regulations as The International Organization for Stan- visions were made in ları Quality Manual. per Banking Law no. 5411 and Tax Laws: dardization (ISO) has completed its work on 15 September 2015 and has published And “Risk and Opportunity Evaluation Pro- • TRL 34.111 Thousand of aid and donation the ISO 9001: 2015 version and made the cedure m was prepared. has been made for the infrastructure needs transition to version 2015 mandatory. TSE authorities carried out the II. Supervi- of the local administrations and for the Transition studies for the ISO 9001: 2015 sion Inspection on January 15-17, 2019 to needs of the schools and other public insti- version were completed at the Iller Bank verify the compliance, continuity and conti- tutions and institutions which are affiliated and the 1st Surveillance and Transition Au- nuity of the Iller Bank Quality Management to the Ministry of National Education. Treasury Management dit was carried out between 16-19 January System with the requirements of TS EN ISO Iller Bank, the Board of Directors with the 2018 by TSE officials. 9001: 2015 standard. decision no. 35/968 dated 16 November 2017 and pursuant to paragraph 4 of Ar-

Elektronik ticle 60 of the Banking Law No. 5411 and Training Activities the Public Treasury General Communiqué Fon Transferi İşlemleri Iller Bank pays particular attention to train- published in the Official Gazette dated 28 In order to increase the productivity of its re- ing activities for human resources. Courses February 2018 dated 30346 Funds can be sources while also lowering its funding costs, and seminars are organized in the country accepted from our administrations, munic- Iller Bank makes extensive use of electronic to increase competencies and knowledge ipalities and borrowers. Banking funds transfers (EFT) in the conduct of its of the Bank personnel and the personnel banking business and transactions. By mak- In 2018, TRL 5.570.986 Thousand of funds are ensured to participate in the courses Iller Bank is a development and investment ing effective use of modern technology at its were collected from our shareholders. TRL and seminars at home and abroad. A total bank whose activities are governed by ar- own EFT center, local governments’ shares, 4.891.934 Thousand of this fund has been of 631personnel were provided training by ticle 77 of the Banking Law (no.5411). Wit- progress entitlement so wed to contractors paid and TRL 679.051 Thousand has been Iller Bank in 2018. hin the framework of Law no. 6107 gover- under lending agreements to which the bank transferred to the year 2019. TRL 102.217 ning İller Bankası AS and of the “Iller Bank is a party, and all disbursements related to Thousand of interest was paid to Iller Bank Articles of Incorporation and Lending Re- the bank’s current expenditures are made partners and prospects regarding these Insurance gulations” issued pursuant to that law, the within one hour directly to the recipients’ transactions. bank extends short-, medium-, and long- Iller Bank is an A group agent for Groupa- accounts in line with their instructions and term credit to local governments while In the year 2018, interest income amounting ma Sigorta Inc. and Güven Sigorta Inc. in- without the involvement of any other inter- also providing them with non-cash credit. to TRL 157.055 Thousand has been obtained surance firms. In that capacity it negotiates mediary bank whatsoever. from valuing the bank liquidity in the inter- insurance coverage for installations, vehi- Pursuant to Article 60 (4) of the Banking In year 2018, Iller Bank EFT Center sent bank money markets. However, borrowing cles, materials, and buildings belonging to Law and the amendment of the Public out 68.832 transfers worth a totalof TRL from the interbank money market to meet local governments, bank personnel, and Treasury General Communiqué published 190.091 thousand to banks and financial the Bank’s short term cash needs TRL 88.297 other individuals and organizations. In year in the Official Gazette dated 28 February institutions while processing 14.714 in- Thousand for the result. interest expense, 2018, the bank issued 3561 policies and 2018 and numbered 30346, the Bank pro- coming transfers whose combined value and the amount of interest income was TRL earned TRL 546 thousand as commission vides funds from special provincial admi- amounted to TRL 190.119 thousand. 68.758 Thousand from Treasury transactions. income. nistrations, municipalities and borrowers. 52 53

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Bank’s 2018 Annual Activities Bank’s 2018 Annual Activities

Research-Development Activities for New Services and Operations

Pursuant to its governing law, Iller Bank performs project development, offers consultancy services and secures credit-financing for the projects for the infrastructure and superstructure investments needed by local govern- ments. The bank keeps a close eye on advancing technology and the products used in Turkey and abroad, in parallel with the services it renders. Energy Energy Renewable Project and Within the framework of new fields of activity, work on resource development projects, urban transfor- Analysis Efficiency Energy Installation mation projects, Geographical Information System and Urban Information System are in progress. In this respect;

Urban Information System:

This system aims for the association be- tween city’s geographical features, socio economical characteristics, infrastructure In this context, free of charge conducted studies; and superstructure, intelligent and layered maps, revenue and expenditure systems, determination of liabilities and subscrip- Renewable Energy Analyzes starting from field visits are A study on energy production from re- tions, creation of necessary personnel, Resources and Energy done firstly by Energy Analysis to deter- newable energy sources is carried out computer hardware and software infra- Efficiency Projects: mine in which areas the energy consump- jointly with the Local Authorities on the structures, turning system into a living and tion is higher (buildings, drinking water characteristics of the power plant (type, continuously updated project, ensuring full pumps, wastewater treatment plant, park power, location selection, etc.) to be estab- Renewable Energy Sources and Energy Ef- coordination of data collection, providing garden street lighting etc.). lished for the energy consumption which ficiency projects in Local Administrations, information and knowledge generation is known as net and information about the where Iller Bank will be the frontrunner After this determination, the amount for more accurate and faster decision and legal process starting with taking the nec- and operator, are vital for a country where of energy saving was made by prelimi- control mechanisms. In this context, the essary permits before the work, reports almost all of its current deficit originated Municipalities and local governments are nary studies on how the energy consumed on financial information such as net pres- from energy imports, as energy supply provided with loans and technical facilities could be reduced while service was provid- ent value, return period of investment and security is now almost in tandem with na- by Iller Bank. ed and information was given to the Local information about benefits to be obtained tional security. It is acted with the aware- Authorities in order that detailed studies by the power plant to be installed (energy ness that the initiatives of this sector are should be done if necessary. production, reduction of carbon emissions, initiated from the Local Governments and incomes, employment etc.) are prepared. that the meeting of the energy costs is no After the Energy Efficiency studies are Local governments are also informed longer sustainable, it is important to be ex- The Renewable Energy completed and the real energy need is de- that if they decide to invest in this area, emplary and to spread the whole country Resources and Energy Efficiency termined with minimum investments and they can provide support within the next and to contribute to a more livable world the highest earning is obtained, studies on projects in Local Governments, stages (project, financing, bidding, inspec- on a global scale in terms of reducing car- Energy Production from Renewable En- which will be the forerunner and tion service, etc.) if they demand it. bon emissions. lead of Iller Bank, are vital for a ergy Sources (Solar Energy, Wind Energy, As a result, we know the importance of de- Within the framework of the Integrated Hydraulic Energy, Geothermal Energy, Bio- country where almost all of the veloping healthy and livable modern cities Energy Design program, İller Bank has mass-Biogas Energy, as well as heat stor- current account deficit is due to that use clean and inexhaustible energy developed solutions in the area of energy age and heat pumps) are started. energy imports. resources in our country at the highest production and productivity that our Local level, and we build our solutions on CLEAN Authorities need in the light of the princi- and TUNNELESS energy technologies. ples mentioned above. 54 55

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Management and Corporate Governance Practices Management and Corporate Governance Practices

Board of Directors

Ertan YETİM / Chairman of the Board Ertan YETİM was born in 1966 in Trabzon. In 1988, he completed his undergraduate education in Karadeniz Tech- Av. Fehmi Hüsrev KUTLU / Board Member* nical University Civil Engineering Department. She completed her master degree on urban transformation in Okan Fehmi Hüsrev KUTLU was born in 1961 in Adıyaman. He graduated from Istanbul University Faculty of Law in 1983. University in between 2014-2017. 1988-1997 years in the private sector a civil engineer, construction contained in chief and technical officer Mr. YETİM, 1997-2004 between the years after serving as chief control kiptaş’ subsidiary He worked as a lawyer between 1986-2002. Between 2002-2011. In the Grand National Assembly of Turkey Kutlu of the Istanbul Metropolitan Municipality, a subsidiary of TOKI from, respectively, 2004-2005 Real Estate Marketing Adiyaman deputy who had made two periods in 2014, was appointed to the Municipality of Adiyaman still conti- the Directorate General of Civil company, after starting his career as an expert in TOKI in 2007, primarily the De- nues to this task. On May 22, 2014, he was elected as a member of the Board of Directors at the Ordinary General partment of the same institution, from 2005 to 2011 years in the Real Estate Housing REIT Board of Directors Vice Assembly of Iller Bank Inc. On 6 July 2017 he was elected as a Member of the Board of Directors at the Ordinary Chairman and Executive Member, while the 2011-2018 year were found in the Board President. On 16 July 2018, General Assembly of Iller Bank Inc. on behalf of the Municipalities. Iller Bank A.Ş. Mr. YETİM was appointed as a Member of the Board of Directors on 20 July 2018. He was also elected as the Chairman of the Board of Directors. He is married with two children.

Yusuf BÜYÜK / General Manager/Board Member Oğuzhan YILDIZ / Board Member Yusuf BÜYÜK, was born on 1968 in Rize. Having graduated from Istanbul Technical University, Faculty of Civil Engi- 1997 in Eskişehir Osmangazi University Faculty of engineering and architecture, Construction Engineering underg- neering, he got his masters in business administration from a Turkish Aeronautical Association University, Institute raduate degree, 2005 in Erciyes University, Institute of science and technology “and the main Civil Engineering of Social Sciences in 2013. For a while, he worked as an engineer with the private sector. He also served as a control Science in 2014 THK University “The main Business Science Graduate School of social sciences. After working for engineer at Rize Municipality. His career stops include the positions of technical director at the Metropolitan Mu- a construction company he had established for a while, he worked as a Project and Control Engineer, Production nicipality BUGSAŞ Inc., Vice President at Ankara Başkent Doğalgaz Dağıtım Inc., and Vice President at Metropolitan Implementation Manager and Head of Investment Coordination Department in the General Directorate of Iller Bank. Municipality of Ankara PORTAŞ Inc. On January 15, 2013, Iller Bankası Inc. started as a Head of Department. Mr. He was appointed to the Public Procurement Board in 2016. Oğuzhan Yıldız, who has many works in the design of BÜYÜK was appointed as Deputy General Manager on 08 July 2016 and he has been appointed as General Manager drinking water supply and waste water infrastructure systems, was appointed to Iller Bank in August 2018 and he on 13 January 2017 and he is still working in this position. He has served in the establishment and management of has been elected as a member to the Audit Committee of the Bank. many non-governmental organizations.

Mücahit DEMİRTAŞ / Board Member Mücahit DEMİRTAŞ, was born in 1959 in Refahiye. In 1982, he graduated from Istanbul Technical University Sakar- İlker EREN / Board Member ya Engineering Faculty, Department of Civil Engineering. Between the years of 1982 2009, he acted as Sümerbank He was born in 1966 in Erzurum Province, İspir District. Primary school in Küçük Yalı Primary School, secondary General Manager, Bursa Provincial National Education Manager and as a Manager at various positions at Istanbul school in Bostancı Secondary School, After graduating from Kartal Industrial Vocational High School, he graduated Metropolitan Municipality. 2005-2009 a member of the Board of Directors, İGDAŞ between acts as the DAVIES, 2009 from Istanbul University Faculty of Economics, Department of Economics. During 1989-1990, he completed his Ministry of environment, planning, since İstanbul Provincial Directorate, General Directorate of Construction and De- MA degree in Istanbul University, Faculty of Economics, Department of Money and Banking. Between the years of puty Undersecretary positions whether 2018 year He has been serving as Deputy Minister since June. Ministry of Environment and Urbanism No. 9687 dated 29 September 2016 and Iller Bank Inc. he was appointed as a member of 1992-2000, he completed his Ph.D at the Department of Money and Banking at the Faculty of Economics at Istan- the board of directors and was elected as the chairman of the Board of directors in accordance with the decision of the bul University (phD). Between the years 1995-2016, he worked as the Finance and Financial Affairs Coordinator in Board of Directors dated 6 October 2016 and numbered 33/915. On 20 July 2018, he resigned from his duties as the the group companies between the first 500 companies. He is currently the Finance Manager of Beşiktaş Tersane Chairman of the Board of Directors and he still serves as a Board Member. He is also the Chairman of the Turkish World Inc.. On August 15, 2018, Iller Bank Inc. He was appointed to the Board of Directors. He is married with two children. Engineers and Architects. He speaks English and Arabic.

Mehmet YEREBAKAN / Board Member* • Pursuant to Article 7 of the bank’s governing law (no.6107), the bank’s Board of Directors is composed of 7 members in total, inclu- Mehmet YEREBAKAN, was born in Ardeşen in 1961. He graduated in 1984 from Karadeniz University Gümüshane ding the General Manager. Four of the Board members are appointed by the Ministry of Environment and Urbanization, whereas two Vocational School, and in 1989 from Anadolu University, Open Education Faculty, Department of Economics. He is members who will represent municipalities and special provincial lauthorities are elected by the General Assembly of Shareholders from currently a graduate student at Real Estate Appraisal and Management Department of the Faculty of Sciences, An- among two groups of nominees nominated by the Ministry of Interior from among the mayors and special provincial authority repre- kara Institute of Science. His career began as an accountant in private sector in 1988. In that track, he served as an sentatives that attend the General Assembly. In the meeting that immediately follows the oath-taking ceremony, the Board of Director selects one member from among them as the chairman and one as the deputy chairman. Board members serve a term of office of three accounting director till 1994. In 1994, he was elected as a Municipal Assembly Member in Rize Ardesen, whereupon years each, and those whose terms expire may be re-appointed. he served as Deputy Mayor, and till 2004, the Chairman of the Budget Committee. In the period 2009-2014, he served (*) The term of office of Mehmet • The Board of Directors is obliged to meet at least once a month to fulfill the duties and responsibilities imposed thereupon by the go- as a Municipal Assembly Member, Deputy Mayor, and Chairman of the Zoning Committee. Furthermore, in the period YEREBAKAN, elected as a member of verning law of Iller Bank and by the Iller Bank’s Articles of Incorporation. The Board of Directors held 32 ordinary meetings in year 2018 2009-2014, he served as the Chairman of the Board of Directors of Arbelsan A.S., as subsidiary of the Municipality. In the Board of Directors on behalf of and passed a total of 887 resolutions in these meetings. the Special Provincial Administrations, 2014, he was elected a Provincial Assembly Member; in the Ordinary General Assembly of Iller Bank, held on 22 May, • In accordance with the provision of Article 12, Paragraph 1 of Law no. 6107 on Iller Bank, “Board Members may be paid monthly wages and Fehmi Hüsrev KUTLU, elected as a and other remuneration in amounts to be determined by the General Assembly, subject to the upper limit to be determined annually by 2014, he was elected the Board of Directors Member representing the Special Provincial Administrations. He is cur- member of the Board of Directors on the Higher Planning Board”, financial benefits such as per diem, bonus, or dividend shares are not granted outside the wage payments. rently studying for a masters degree at Recep Tayyip Erdogan University. At the Ordinary General Assembly Meeting behalf of Municipalities, will expire on 31 held on July 6, 2017, he was re-elected as a member of the Board of Directors of İller Bank from the representatives of March 2019. • The Bank has no committees such as the Credits Committee, which may be established to assist the Board of Directors and the Audit Committee. the Special Provincial Administration. He was also elected as the Chairman of the Board of Directors with the Resolu- tion 17/476 dated 26 July 2018 and the Chairman of the Audit Committee with the Resolution 17/477. 56 57

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Management and Corporate Governance Practices Management and Corporate Governance Practices

Information on the Assets and Liabilities Committee Information On Audit Committee

Chairman Yusuf BÜYÜK, Turan KONAK / Audit Board Member General Manager and Member of Board of Directors He was born in 1973 in Trabzon. After completing his primary and secondary education in Trabzon, he graduated from Istanbul University, Faculty of Political Sciences, Department of Public Administration with the first degree in 1994. At the same university, he completed his master’s degree in Public Administration and prepared a thesis on Members “supervision and Ombudsman in local administrations”. He then completed his MBA program in Business Admi- nistration at Beykent University. He started his business life in 1995 in Istanbul Metropolitan Municipality under Selahattin ÖZSOY, Vice General Manager the direction of the board. After having served as assistant manager and manager in the same unit, he served as Salih YILMAZ, Vice General Manager editor-in-chief and decision-making Department. Municipal councillors to the membership in addition, a subsidiary of the Istanbul Metropolitan Municipality and the inspectorate in the membership of the board of directors and has been chairman of the board of directors. He was a member of the Istanbul Provincial Human Rights Council. During this time, he has gained experience in the fields of Municipal Council and authority, tender legislation, development The Assets and Liabilities Committee was established through Iller Bank Board of Directors resolution nr. 3/28 dated 19.03.2014. The committee is assigned the plans and zoning applications, electronic correspondence and digital archiving, supervision in local administrations, tasks of evaluating the Bank’s finances, portfolio, credit interests, and the developments in financial and capital markets, as well as other developments at the Bank and attended a number of seminars and seminars. After serving as head of department and then head of admi- and in other banks, with a view to establishing the policies regarding the management of the Bank’s assets and liabilities and related fund transactions, and making nistrative and financial affairs between 2016-2018, with the decision of the presidency of 2018/64 published in the decisions to be executed by relevant departments in order to manage the Bank’s balance sheet, as well as monitoring the implementation of the decisions taken. the Official Gazette dated 6 August 2018 and numbered 30501, the Mr. Konak has been assigned to the Gene- The Assets and Liabilities Committee conducted 12 meeting in year 2018 and passed 12 resolutitons. ral Directorate of local administrations. The Ministry of Environment and Urbanism, No. 141256 dated 10 August 2018 and Iller Bank Inc. he was appointed as a member of the board of auditors. He is also an executive of various non-governmental organizations.

Fatih ÖZGÖKÇEN / Audit Board Member Fatih ÖZGÖKÇEN was born in Konya in 1977. He completed his primary, secondary and high school education in Audit Committee Konya. In 2002 he graduated from Çankaya University Faculty of law. Selçuk University Faculty of Law, Department of private law. He has been working as a freelance lawyer in Konya since 2003. He has worked as legal advisor of various commercial companies, businesses and public institutions during the free advocacy period. Between 2002 and 2017, he served as the Vice President and member of the Board of directors at various associations and Kon- yaspor Football Club. He is currently a member of the Konya Protection Council of Ministry of Culture.The Ministry of Environment and Urbanism, No. 141256 dated 10 August 2018 and Iller Bank Inc. she was also appointed as Mehmet YEREBAKAN Oğuzhan YILDIZ member of the supervisory board and is currently continuing this task. He is married and has 3 children. Chairman of the Audit Committee Audit Committee Member

Mr. YEREBAKAN’s Resumé Mr. YILDIZ’s Resumé is found on page 54 is found on page 55

Iller Bank Audit Committee was formed pursuant to the Board of Directors resolution 8/92 dated 22 February 2008. This committee is charged with, and is responsible to the Board of Directors for, overseeing the effectiveness and adequacy of the bank’s internal systems and ensuring that these systems and also the accounting and re- porting systems function as prescribed by laws and regulations, and for guaranteeing the integrity of the information generated by them; for the conduct of preliminary assessments leading to the Board of Directors’ selection of independent auditors and for regularly monitoring the activities • Pursuant to Article 9 of the Law no. 6107 governing Iller Bankası Inc., the bank’s Audit Board is formedof three mem- of such auditors as the board may select and enter into agreements with. The Audit Committeee was previously governed by the Audit Committee Operating bers. Two members are appointed by the Ministry of Environment and Urbanization, and one member by the Ministry Procedures and Principles Regulation approved by the bank’s Board of Directors resolution 21/298 dated 25 June 2008; upon enforcement of the Law no. 6107 of Finance. Audit Board Members are required to possess the qualifications required of Board Members. governing İller Bankası AS, the Iller Bank Audit Committee Regulation approved by the Board of Directors decision 23/286 dated 26 July 2011 was abrogated; • In accordance with the provision of Article 9, Paragraph 2 of Law no. 6107 on Iller Bank, “Audit Board Members shall thereafter the Committee and its activities became subject to the Iller Bank Audit Committee Regulation adopted through the Board of Directors resolution no. be paid monthly wages and other remuneration in amounts to be determined by the General Assembly, subject to the 29/520 dated 27 September, 2012. upper limit to be determined annually by the Higher Planning Board for Audit Board Members”, no financial benefits other than wages are paid. The Audit Committee had 22 meetings in year 2018, discussing 71 matters. 58 59

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Management and Corporate Governance Practices Management and Corporate Governance Practices

Genel Müdür ve Genel Müdür Yardımcılarına İlişkin Bilgiler

Yusuf BÜYÜK General Manager and Member of Board of Directors Mr. BÜYÜK’s Resumé is found on page 54.

Salih YILMAZ / General Manager Deputy Nurullah ÖZTÜRK / General Manager Deputy Salih YILMAZ, was born in Kemaliye in 1966. After graduating from Vefa High School,in 1988, he graduated from Is- tanbul University, Faculty of Economics. He worked for a while in the private sector, and in the period 1995-2007, as Nurullah ÖZTÜRK, was born in Trabzon in 1980. He graduated from Karadeniz Technical University, Fa- a Public Accountant. Mr. Yılmaz was appointed as an Auditor of Iller Bank in 2006. During his tenure at that position, culty of Engineering and Architecture, Civil Engineering department in 2001. Between 2001-2005, he he was appointed to the Boardof Directors of Iller Bank through the Joint Decree dated 22 March, 2007. Thereafter worked as Field Engineer and Department chief in private institutions. Between 2005-2018 he worked he served as a Member of the Audit Committee, Chairman of the Audit Committee, Deputy Chairman of the Board in Emlak Konut GYO Inc. he worked as Specialist, Ankara Regional Directorate and Head of Application of Directors, and a Consultant. Since 17 April, 2014, he continues to serve as a Vice President. He studied on Project Department. From 2018, Iller bank Inc. Mr. ÖZTÜRK was appointed as the Deputy General Manager Finance and Credit Analysis at the Banking Formation Institute of Luxembourg (IFBL). He holds Islamic Finance and and acting as the deputy general manager with the condition of the General Manager’s Office dated 24 Sukuk Training Certificates (from INCEIF and Capital Market Licensing Registry and Training Agency), Expert Witness September 2018 and numbered 88531. Certificate, Independent Auditor License for Capital Markets, Credit Rating Expert License, Corporate Governance Rating Expert License, and Advanced Capital Market Operations License. Turkey and Middle East Public Administra- tion Institute in the Top 52. Period for Public Diplomacy Training Program (KADEP) completed .Furthermore, he is an Independent Auditor accredited by Public Oversight, Accounting, and Audit Standard Agency.

Volkan BEKTAŞ / General Manager Deputy

Selahattin ÖZSOY / General Manager Deputy Volkan BEKTAŞ, was born in Trabzon in 1974. In 1998, he completed Mechanical Engineering at Karadeniz Technical University, Faculty of Engineering and architecture. He completed his master’s degree in business administration at Selahattin ÖZSOY was born in 1964 in Palu province of Elazığ. He completed his primary, secondary and high school Eurasian University in 2013. He worked as mechanical engineer at Iller Bank Erzurum regional directorate between education in Elazığ Palu. He graduated from Istanbul Technical University İ.T.Ü, Faculty of Engineering, Department 1998-2001, engineer at Iller bank Trabzon Regional Directorate between 2001-2011, Technical Specialist at Iller of Civil Engineering in 1988. In 2015 he completed his master’s degree in business administration at Okan Univer- Bank Trabzon Regional Directorate between 2011-2013, implementation manager at Trabzon Regional Directorate sity. He is married and father of two children. Between 1988-1989 he worked as a freelance engineer. in 1989 he between 2013-2013, Regional Manager at Gaziantep Regional Directorate between 2018-2019, and regional ma- began his career at İller Bank of Elazığ District Directorate as a Civil Engineer. Between 1989-1991, he has comple- nager at Trabzon Regional Directorate between 2018-2019. He has been appointed as assistant general manager ted his military service in Ankara.At Iller Bank; Between 1989 and 2008, he worked as Construction Engineer, Chief by the general manager’s office on January 18, 2019 and numbered 6247. He speaks intermediate English. He is Engineer and Production - Project Branch Manager. In 2008, he was appointed as Elazığ Regional Manager. While married and has 2 children. he was working as İzmir Regional Director since 2014, he was appointed as Assistant General Manager on March 6, 2017.

Emrah BAYDEMİR / General Manager Deputy

Emrah BAYDEMİR was born in 1979 in Elbistan/Kahramanmaraş. He completed his high school education at Istan- • The Bank’s General Manager is appointed by the Prime Minister upon nomination by the Minister of Environment and bul Atatürk Science High School. In 2002 he completed his undergraduate studies at Istanbul Technical University Urbanization, whereas Deputy General Managers are appointed upon nomination by the General Manager and based Faculty of Business Administration Engineering. Between 2002 and 2018, he worked as an office Engineer, Control on the Board of Directors decision, and then approved by the Minister of Environment and Urbanization. There are no Engineer, Business Development Manager, Technical Coordination Manager (World Bank Purchasing consultant) in fixed terms of office for these positions. national and international projects in various private sector companies. He served as senior manager and general • ‘In accordance with the provision of Article 12, Paragraph 2 of Iller Bank Law no. 6107 ,”Monthly wages, bonuses, other manager in the energy and urban infrastructure sector in institutions that fulfill professional technical and finan- remuneration and benefits of the Bank’s staff as well as terms and conditions of employment contracts shall be deter- cial consultancy services and commitment services and provide international services. inistry of Environment and mined by the Board of Directors decision, upon the proposal of the General Manager. However, the monthly average of Urbanism, 26 April 2018 date and 17591 numbered with the Iller Bank A.S.he has been appointed as assistant all payments, as wage, benefits, raise, compensation, appropriation or other wise, shall not exceed the upper limit to be general manager and is currently in charge of this position. Speaks English at an advanced level. Is married with set by the Higher Planning Board for the Bank.” two children. 60 61

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Management and Corporate Governance Practices

Information On Internal Systems Unit Directors Organizational Chart Of Iller Bank

GENERAL BOARD

Yaşar OKUR / Deputy Chairman of the Supervisory Board AUDIT BOARD BOARD OF DIRECTORS Yaşar OKUR, was born in Devrek (Zonguldak) in 1968. In 1992, he graduated from Ankara University, Department AUDIT COMMITTEE of Public Administration. He completed his master’s degree at Kocaeli University Faculty of Economics and Admi- Mehmet YEREBAKAN Turan KONAK Chairman of the Board of Directors nistrative Sciences (Faculty of Management Sciences). He still continues his doctoral study in the stage of thesis at Chairman Fatih ÖZGÖKÇEN Ertan YETİM Kocaeli University, Institute of Social Sciences, Department of Public Administration, Major in Political Science and Oğuzhan YILDIZ Public Administration. In 1996 he started as a Deputy Supervisor in the Board of Supervisors of Ziraat Bank. Until Mehmet YEREBAKAN Member 2003, he served as a Supervisor Assistant and a Supervisor, and then in 2003 he was transferred to the Supervisor (Deputy chairman) Board of Iller Bank. In 2007, he became Chief Supervisor. On September 19, 2016, he was appointed a Vice Deputy Yusuf BÜYÜK Chairman of Supervisor Board and on November 24, 2016 as a Deputy Chairman of Supervisor Board. He was Mücahit DEMİRTAŞ Board of Directors Secretariat appointed as the Chairman of the Board of Inspectors with the decision of the Board of Directors dated April 26, Fehmi Hüsrev KUTLU Deputy Chairman of the Supervisory Board Oğuzhan YILDIZ 2018 and numbered 8/124, and he still continues this duty. His master thesis was published by Nobel Publishing Yaşar OKUR House as “Public Audit in Turkey; Change Process and Performance Audit “. Apart from this, there are published İlker EREN Internal Control Department Chairman articles in some refereed and non-refereed journals and participated in training and certification programs such Nuran BÜYÜKÖZDEMİR as Internal Audit, IT Audit, COBIT, Management Declaration, Public Procurement Law and Application, FIDIC and its GENERAL MANAGER Head of Risk Management Department implementation. SMMMO certificate is available. He has also been authorized as an Independent Auditor by Public Yusuf BÜYÜK Ercan ÇAKIROĞLU Oversight, Accounting and Auditing Institution. The foreign language is English and Arabic. He is married with two Audit Committee Secretariat children. Moreover, the studies are all in progress in the scope of 150 playgrounds project in 81 Provinces signed by and between our Bank and the Ministry of Environment and Urbanization, ÇEVDES Project (Supporting Infrastruc- ture Projects Project), Support Protocol for Urban Arrangement of Local Administrations (KENT-DES), Basin Support Protocol, and Protocol related to construction of infrastructure facilities damaged and need within the framework Secretariat of the Law No. 6306 on the transformation of Area subject to Disaster risks and Protocol related to establishment of common infrastructures for Istanbul International Finance Centre (IFFC).

Vice General Manager Vice General Manager Vice General Manager Vice General Manager Vice General Manager Vice General Manager Nuran BÜYÜKÖZDEMİR / Internal Control Department Director Emrah BAYDEMİR Selahattin ÖZSOY Salih YILMAZ Volkan BEKTAŞ Nurullah ÖZTÜRK Nuran BÜYÜKÖZDEMIR was born in Bolu/Mengen in 1970. He received his bachelor’s degree in economics from Resource Development Anadolu University, Faculty of Economics in 1996. He served as an officer in the General Directorate of Social Se- International Relations Investment Coordination Accounting and Financial Infrastructure Department Department Affairs Department Applications Dep. Department curity Institution of the Ministry of Labour and Social Security between 1989-1995. Since 1995, Iller BankInc. after Bilgin KOLUAÇIK Legal Adviser Şevket Altuğ TAŞDEMİR Hakkı ÇIRAK Gökmen TEMİRCAN Erdinç KAPUSUZ Hikmetullah ARVAS serving as Officer, Chief, Branch Manager, management personnel, expert and manager in the board of directors, he was appointed as the head of the Internal Control Department by the decision of the Board of Directors dated Investments Human Resources Superstructure IT Department Project Department Assessments Dept. Department Applications Dep. Press and Public 24 May 2018 and numbered 10/230. She is married and has 1 child. Yasin ÖZEN Onuray GÖZÜTOK Turay AKSOY Ünal ESEN Orhan IŞIK Relations Department

Support Services Banking Services Planning and Spatial Planning R & D Board Department Head Department Department Coordination Dep. Department Yusuf Hakan BEKTAŞ Erdoğan TOPÇU Enver Baki HELVACI Muhammet GÖÇER Tolgahan YILDIZ Osman Nuri OSMANLI

Ercan ÇAKIROĞLU / Risk Management Department Director Department Head Enes Görkem KALFAOĞLU Ercan ÇAKIROĞLU, was born in Sürmene in 1974. He graduated from Ankara University School of Political Science, Department of Labor Economics and Industrial Relations.In1996, his career began at T.C. Ziraat Bank, as a Junior Foreing Service Units Inspector under the Board of Inspectors. After service as a Junior Inspector and In- spector, he was appointed Ins- pector in 2004, at Iller Bank Board of Inspectors. His tenure at Inspector and Chief Inspector roles at Iller Bank was Domestic Service Units followed by hisappointment to the post of Director of Internal Control Department through Boardo of Director sre-

solution no. 9/190 dated 21 March, 2013. He was appointed the Director of Risk Management Department through İstanbul Regional Directorate M. Ferit YÜKSEL Ankara Regional Directorate Levent YANAR Van Regional Directorate Ayhan KAYATÜRK the Board decision dated 17 July, 2014 nr. 17/245, and continues to serve in that role. Ercan ÇAKIROGLUholds the Bursa Regional Directorate Ali Ekrem AYTI Adana Regional Directorate Muzaffer AKGÜNER Erzurum Regional Directorate Sedat YILMAZ İzmir Regional Directorate Enver ÇELEBİ Kayseri Regional Directorate Sönmez ATA Sivas Regional Directorate Harun CESUR Public Accountant License issued by the Turkish Association of Public Accountant and Certified Public Accountant Eskişehir Regional Directorate Murat KARAÇAM Gaziantep Regional Directorate Beyhan İNCE Samsun Regional Directorate Osman N. BAŞARAN Chambers, and the Independent Auditor License issued by the Public Oversight, Accounting and Audit Standards Antalya Regional Directorate Fuat KOÇAL Diyarbakır Regional Directorate Süleyman H. BAYRAK Trabzon Regional Directorate v. Ali KURT Konya Regional Directorate Yüksel DEMİRCİ Elazığ Regional Directorate Celal KAŞTI Kastamonu Regional Directorate Ümit A. KARA Agency of Turkey. He is married and father of two children. Note: Organization chart 28.02.2019 Presented as of the report date. 62 63

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Established in 1933 under the name “Belediyeler Bankası” (Munici- 69 municipal water supply facilities belonging to the municipalities palities Bank) with the aim of providing service to municipalities and whose population is less than 10.000 and whose municipal water renamed “Iller Bankası” (Provinces Bank) in 1945 so as to offer ser- supply is insufficient or inadequate, expenditure amounting for in vice to local governments with expanded scope of duties, authorities 2018 to TRL 1.812 Thousand, the total is TRL 129.650 Thousand and responsibilities, the Bank has been reorganized as a joint stock and 67 projects have been completed. company under “Law no. 6107 governing lller Bank Inc.”, which went In the scope of the appropriations transferred by the General Budget into force upon its publication in the Official Gazette issue 27840 Board for the implementation of the drinking water, sewerage, rain dated 8 February 2011. With the reorganization, it was aimed to in- water and sewage treatment plants under the name of “Water and crease the Bank’s contribution to modern structures needed for the Sewerage Infrastructure Project” (SUKAP), with 50% of the grant and country’s urbanization. 50% of the İller Bank credit, the municipalities whose population is The Bank’s purposes of incorporation are defined as satisfying the under 25.000 under the 2011/11 High Planning Council Resolutions financing need of special provincial authorities, municipalities, their except for the credit for the works placed in the year 2018 was made affiliated organizations and of local administrative associations of TRL 547.643 thousand expenditure. which only these may be members; developing projects concerning Each year, 51% of the Bank’s profits are financed by the provincial locally provided common services for the people dwelling within the special administrations, technical and social infrastructure ser- boundaries of such administrations; providing such administrations vices of the villagers; municipalities with a population of less than with consultancy services and assistance on urban projects of a 200,000 are financed to finance the construction of the munici- technical nature and in the conduct of infrastructure and superstruc- palities with a population of less than 25,000 and with projects fi- ture works, and performing any and all development and investment nanced by urban infrastructure projects such as maps, zoning plans, banking functions. In doing so, Iller Bank fulfills its duties by provid- drinking water, wastewater, solid waste, urban information system ing financing under the most suitable conditions from its own re- and so on. Within the framework of the Implementing Regulation sources as well as from international sources for projects that are on the Use of Residents and Municipalities in Infrastructure Project developed in order to meet the urban needs of local governments; and Construction Works, in 2018 , TRL 51.150 Thousand grant was by acting as a consultant; by developing projects which are optimally extended, TRL 33.775 thousand for villagers and TRL 17.375 thou- scaled and employ the newest technology; by approving such proj- sand for municipalities. ects prepared by municipalities or by actually carrying out all such Within the scope of the studies carried out with International Finance projects on its own. Institutions; During 2018, the Bank channeled TRL 9.905.968 thousand in funds Lending stage of the credit and guarantee agreements for a total to local governments. Of this amount, TRL 8.536.070 thousand was worth of EUR 391,100 thousand signed on 8 February 2006 and extended as loans from the Bank’s own resources, whereas the bal- 29 June 2010 for use towards the infrastructure services of 15 lo- ance was covered from funds and grants-in-aid, and external sources. cal governments under the Municipal Services Project I-II carried The works that carried out within the scope of the funds transferred out with the World Bank has been concluded, and repayment stage from the General Budget and the funds allocated from the Bank profit; commenced. The lending stage of the Municipal Services Project I-II is still in progress. With the decisions of the Higher Planning Council numbered 2007/6 and 2007/36, within the scope of “Belediyelerin Infrastructure Sup- In the Treasury guaranteed loan agreement signed with the World port (BEL-DES) Project” , the project planning and construction of Bank within the scope of Sustainable Cities Project-I on 26 December 64 65

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2016 with a value of EUR 121.200 Thousand, sub-loan agreements In order to further collaboration in the field of urban transporta- were signed with the municipalities that will use loans on 28 Decem- tion, water, waste water, and solid waste-priority sectors within Profit / Loss ber 2016, and as of 31 December 2018, a total of 482 Thousand the framework of Turkey’s accession to the European Union (EU), a In accordance with Article 5/1-e of the Corporate Tax Law, TL 61.713 Thousand. The breakdown of TRL 1,664,487 Thousand Euro loans were extended. Under the Sustainable Cities Project-II, the 250 million Euro worth Credit Agreement on “Urban Infrastructure 59.781 Thousand of the in 2018 Bank’s profit before tax amoun- of TRL 2,046,539 Thousand of trade income amounting to TRL Treasury guaranteed loan agreement of EUR 73.500 Thousand was Projects” with Treasury Guarantee was signed on 6 October, 2015, ting to TL 2.106.120 Thousand is subject to distribution after the 382.052 Thousand in accordance with the Bank’s Law and Articles signed on 16 May 2018 and sub-loan agreements were signed on 17 by and between the European Investment (EIB) and Iller Bank. The net offsetting of deferred tax assets / liabilities amounting to TL of Association is shown below. May 2018 with the municipalities that will use loans. selection and preparations for the projects to be financed through Japan International Cooperation Agency (JICA) in our country, to pro- the EIB loan is in progress. mote the use of sewage and wastewater treatment systems and to Between our Bank and the Islamic Development Bank to provide fi- (Thousand /TRL) Required Allotment Statutory Deductions Required for Distribution improve the water quality of the receiving environment, the munici- nancing to urban transportation projects of local governments, “Ur- palities of medium size for the improvement of sewerage and waste- ban Transportation Projects” Framework Agreement in the amount of 5% statutory reserves 102.327 19.103 83.224 water treatment systems “Municipal Sewage Network and Improving EUR 150 million was signed on August 29, 2016. Under the project, 5% discretionary statutory reserves 102.327 19.103 83.224 Wastewater Treatment Plant Project” June 22 on 2011, 12.784 mil- the Antalya Metropolitan Municipality’s “Antalya II. Phase square-Air- lion Japanese Yens agreement was signed within the framework took 9% dividend 184.189 34.385 149.804 port-Expo Rail Vehicle Buying and Additional Civil Works “for proj- out a new loan agreement has been signed with local governments. 30% capital share 613.961 114.615 499.346 ect financing on August 31, 2016 39.588 thousand lower Financing is continuing disbursements for the credit agreement, the credit was Agreement in the amount of EUR signed and in relation to the project 51% share for villages’ and municipalities’ project and construction works 1.043.735 194.846 848.889 extended to a total of JPY 10.623 thousand as of December 31, 2018. in 2018 EUR 26.790 thousand euro loan utilization is realized. TOTAL 2.046.539 382.052 1.664.487 Japan International Cooperation Agency (JICA) Loan “Local Govern- Urban Transformation Project scope and other projects carried out ment Infrastructure Development Project” where the Syrians under jointly with the Bank by the Ministry; temporary protection in our country, the local management of wa- 648 No. Decree with our bank added its activities “as requested by for land sales with urban renewal project activities are continuing re- ter, in order to meet the wastewater and demand for projects in the ÇEVDES Project signed between the Ministry of Environment and the Ministry of specific projects and makes the works with urban in- venue-sharing activities. In year 2018, TRL 263.313 thousand was solid waste sector, May 15, 2015 Japan International Cooperation Urbanization and our Bank (Infrastructure Projects Support Proj- frastructure projects or make” the dam “to provide resources for the expended for resource development projects.. Agency (JICA) and our Bank 45 billion in Japanese yen amounting ect), Protocol on Supporting the Urban Arrangements of Local Gov- Bank, project resources for any debt, and provided that they do not Iller Bank conducts its activities in accordance with the requirements Treasury guaranteed “Local Government Infrastructure Develop- ernments (KENT-DES), Construction of 5.000 Village Houses to be fall under contingent liabilities profit makes investing in real estate of its governing law (no. 6107) and other applicable legislation. We ment Project” loan Agreement is signed, is the sub-loan agreement Completed in 5 Years, 3.000 km Bikes for Greener and Livable Cities projects or make “in the framework of dams has started such activi- hereby submit the independently audited financial statements and with the municipalities for loan disbursements continuing signed a ties in 2012, TRL 468 Thousand resources used within the scope of 3,000 km Green Walkway, 60 km Environment Friendly Street and our summarized report for the fiscal year ending 31 December 2018 total of 12.707 million thousand JPY loans have been disbursed as 2 resource development activities in 2018, developing joint real estate 60.000 m Noise Barrier Work Support Protocol, Van Nation Garden for your consideration, and we thank the Bank’s employees. of December 31, 2018. Project Support Protocol works are continuing at full speed. projects with local governments and other public institutions and organizations to increase significantly the Bank’s income provision Sincerely, Turkey’s European Union between our Bank and the European In- Activities with the 6107 Law No. parallel rearranged to new needs vestment Bank (EU) on the environment in the priority sectors of in our bank R&D activities are being developed and under the new the Talks process; water, wastewater and solid waste in order to fields of activity, Urban Information System to work alongside with cooperate in the field, 28 June 2012 amounting to EUR 150 million the Renewable Energy Sources studies are ongoing. Iller Bank Inc. Board of Directors in Treasury guaranteed “Urban Infrastructure Projects” Credit Agree- ment was signed. under the Loan; Burdur Municipality with 11,500 Headquarters of the Bank in 2018 and 18 as a result of these ac- thousand euros in the loan agreement is signed lower amount has tivities are carried out with a total of 2533 staff including the Re- been utilized any loans as of 31/12/2018. gional Directorate,

As of 31 December, 2018; • Iller Bank’s total assets grew by 28,94% from TRL 24.988.689 thousand to TRL 32.220.920 thousand. • Iller Bank’s total lending grew by 26,23% from TRL 22.409.958 thousand to TRL 28.288.482 thousand. • Iller Bank’s shareholders’ equity grew by 16,03% from TRL 16.012.794 thousand to TRL 18.580.325 thousand. 66 67

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Audit Board Report Human Resources Practices To The 74st Annual General Assembly Of Iller Bank These rules were changed by article 11 of “A law concerning İller Annual salaries of the Bank personnel are set by the Board of Di- Bankası Anonim Sirketi” (no. 6107), which was published in issue rectors on the basis of a base pay determined by a decision of the 27840 of the official gazette on 8 February 2011 and which con- High Planning Board. Iller Bank’s personnel policy as well as the cri- 2018 activities and operations of Iller Bankası Inc. has been audit- year, to TRL 18.580.325 thousand. The capital adequacy ratio at tains two provisions concerning the matter. According to the first, teria, principles, and procedures pertaining to recruitment are set ed in accordance with the provisions of the Bank’s governing LAW year-end stood at 46,08%. “Duties necessitated by the Bank’s services are performed by per- out in the “Iller Bank Human Resources Regulation“ that went into no 6107 and Articles of Incorporation, the Banking Law, the Turkish In 2018, the Bank’s total assets reached TRL 32.220.920 thou- sonnel who are not subject either to the State Civil Servants Law force upon its publication in the Official Gazette issue 27919 dated Commercial Code and banking customs. sand, increasing by 28,94%. The Bank’s total loan portfolio, com- (no. 657 dated 14 July 1965) or to the provisions of other laws per- 29 April 2011. However, the said regulation was abrogated through In year 2018, we took part in meetings of the Bank’s Board of Di- pared to the previous year has seen an increase of 26.23% to reach taining to contract employees.” According to the second, matters the “Regulation on the Abrogation of Iller Bank Human Resources rectors. We reviewed the bank’s books and records, and conducted TRL 28.288.482 thousand. related to “the hiring of the Bank’s personnel, their qualifications, Regulation” published in the Official Gazette dated 4 April, 2011 and cash counts frequently at random intervals, as well as a general their appointments, their progression, their advancement, the ways numbered 28518. The matter is now governed by the “Iller Bank In 2018; Pursuant to the Law No. 5779, TRL 36.062.135 Thousand cash office inventory at year-end along with bank personnel. We in which they may be dismissed, their duties and authorities, their Human Resources Regulation” that was published in the same Offi- to the municipalities, for Special Administrations; TRY 3.005.190 ascertained that all cash items and instruments were duly regis- disciplinary principles, their obligations, their job positions, and their cial Gazette, and that went into force from 22 June, 2012 on. Thousand was distributed. tered as required by regulations and that the year-end inventory numbers are governed by regulations issued subject to the opinion and account reconciliations were carried out in full and in accor- We submit for your approval the Bank’s 2018 balance sheet and of the State Personnel Ministry and pursuant to Board of Directors dance with the requirements of laws and regulations. Consensus profit & loss statement (income statement), which have been decision.” (Amendment:16/05/2012-Law no. 6306/art. 21) memorandums concerning this inventory were signed jointly by drawn up in accordance with the Regulation on the Principles and bank personnel and by ourselves. Procedures for Accounting Practices and Retention of Documents Comparative Human Resources Chart published by the Banking Regulation and Supervision Agency, and The Bank’s 2018 annual report and financial statements that were with the Turkish Accounting Standards and Turkish Financial Re- Year-end 2017 Year-end 2018 submitted to the General Assembly have also been reviewed, en- Type porting Standards and which we have examined and audited. Regional Regional Headquarters Total Headquarters Total dorsed, and approved by the Bank’s Board of Directors. Offices Offices We would like to take this opportunity to express our thanks to the We checked Iller Bank’s financial statements dated 31 December Total Contractual Administrative Personnel 648 648 648 642 648 1290 Chairman and the Members of the Board of Directors, our General 2018 for compliance with the general trial balance and we have as- Manager, and to all of the Bank’s personnel who were involved in Total Contractual Technical Personnel 391 391 391 391 685 1071 certained that they truly reflect the Bank’s activities in year 2018. the conduct of services. We hereby submit Iller Bank’s 2018 annual Total Personnel Subject To Law No. 657 Governing Civil Cervants 2 1 3 3 2 5 No changes occurred in the bank’s shareholder structure during report, balance sheet, and income statement for the consideration 2018. The Bank’s paid-in capital is TRL 14.847.536 thousand, and and approval of the esteemed delegates. Total Blue-Collar Personnel 77 110 187 73 94 167 the Bank’s total shareholders’ equity grew by 14,06% year- to- Grand Total 1118 1321 2439 1104 1429 2533

1) Chairman and Members of the Board of Directors and Members of the Board of Auditors are not included. 2) The staff who are on free leave are included in the table. 5449 SK 18.Md. As of 28 February 2018, 3 Civil Servants in the Development Agency were included in the tables with free leave. While working as personnel subject to Law No. 657, 1 Officer, who is considered to be on leave without pay due to union duty, was appointed as contracted personnel due to the termination of his active duty. 3) Technical Specialist, Technical Assistant Specialist, Engineer, Architect, Technician, Technician positions

Transactions The Bank Enters Into With Members Of Its Own Risk Group As required by Iller Bank Law, the Bank’s capital consists of funds provided by local governments and from other sources mandated by law. For this reason, no member of the Bank’s board, nor the general manager nor any vice president holds a share in the Bank’s capital. The Bank’s Law does not permit the bank to extend credit to any individual or to any organization that is not a local government. No credit is extended to members of the Board of Directors save for that which is allowed under article 50 of the Banking Law and whose amount must not exceed five times the recipient’s total net monthly salary. There are no companies over which Iller Bank has direct control as defined in article 49 of the Banking Law.

Activities For Which Support Services Are Outsourced In order to provide security services at the Headquarters and Regional Directorates of the Bank, private security support services are procured within the framework of the Law no. 5188 on Private Security Services, and the Regulation issued on the basis of the said law. 70 71

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the Emergency Plan, Team and Officer All Staff List in Recovery Pro- Services under support services as a result of evaluations 10 views Audıt Commıttee’s Assessment Of The Operatıon Of The cedure Belongs to Critical Business Processes, was presented to the were given for purchases and the evaluations Service units and the Board for approval to be printed and distributed to all units. Office of Support Services. Internal Control, Internal Audıt, And Rısk Management “Assessment of Banks’ Internal Systems and Internal Capital Ade- Board Of Inspectors Systems and Its Statement Concernıng Actıvıtıes in Year 2018 quacy Under the heading “Compliance Controls” of the “Regulation on the Process” Within the scope of Article 18 and our Bank’s Circular no The Board of Inspectors conducts inspections, examinations, reviews Duties and responsibilities with respect to internal systems are carried presented to the Board of Directors by the Audit Committee. 2013/8, New product of our Bank’s Head Office and Domestic Service and investigations concerning any and all of the Bank’s activities and Units And for their activities they intend to carry out, The Banking Law transactions; formulates necessary proposals to better realize the out by the Audit Committee to assist the Board of Directors with the 2017 Information Systems and Banking Processes Audit Report on and other related regulations, internal policies and rules Internal Con- Bank’s objectives and to ensure operation in accordance with the legis- conduct of its auditing and supervisory activities. “Internal Control, In- the findings and prior period findings was prepared for the May / 2018 trol Department for compliance with banking practices It is necessary lations, plans, projects and programs. It is also responsible for conduct- ternal Audit, and Risk Management Activities” are organized in accor- and September / 2018 period belonging to Action Plan has been sub- to get opinions from the Presidency and the General Directorate As a dance with the provisions of the Banking Regulation and Supervision mitted to the Board for approval, we need to notification obligation ing reviews in all aspects regarding the Bank’s affairs and transactions result of the announcements made to in 2018 the Audit Committee, 1 Agency’s “Regulation on the Internal Systems and Internal Capital Ade- Banking Regulation and Supervision Agency to BADES (Independent so that activities are carried out in a better and coordinated fashion (two) views were provided in the course. quacy Assessment Procedures of Banks”, which went into effect upon Audit Tracking System ) was passed over. and in higher quality. In addition, the Board of Inspectors brings pro- its publication in the Official Gazette issue 29057 dated 11.07.2014. In our Bank, the “Regulation on the Support Services of Banks” Auction posals regarding failing or conflicting aspects of the Bank regulations, Internal Control Department’s Annual Reports, Risk Management for support services to be received within the scope of Besides the ten- and evaluates the effectiveness and adequacy of the Bank’s internal The Audit Committee met a total of 22 times in the period 01.01.2018- Department’s Risk Assessment Reports, Market Risk Calculation Re- der legislation to which our Bank is subject, Compliance with the provi- control system and risk management systems. 31.12.2018, to discuss 71 issues. ports, Risk Limits Monitoring Report, Credit Risk Monitoring Reports sions of the Regulation and The points that service units must respect and Operational Risk Monitoring Reports prepared every 6 months Board of Inspectors; The Internal Audit and Internal Capital Systems The Audit Committee held regular meetings participated by the senior when receiving support services The publication of our Bank’s Circular were evaluated by the Audit Committee and submitted to the Board of of the Banks issued by the BRSA with a staff of 40 people, including 1 management, department directors responsible for internal systems, and all units Information has been provided during the 2013 operat- inspectors and the auditors employed by the independent audit firm Directors by the related Departments. Chairman of the Board of Inspectors, 2 Vice Chairman of the Board, 16 ing period and 2015 During the operating period, the said circular was Chief Inspector, 14 Inspector, 1 Office Manager, 1 Senior Expert, 3 in conducting the Bank’s independent audit to discuss and assess the The “2018 Annual Risk Assessment” prepared by the Internal Control revised and announced on January 14, 2015 Date and Circular No. accordance with the Regulation on the Adequacy Assessment Process operation of internal systems and other agenda items. Department Internal Control Program “and” Internal Control Activity 2015/3 has been published. In this context, support Risk analysis re- and our Bank’s Board of Inspectors. All of the Bank’s units are inspect- Schedule “Audit Committee, and the program and the Management of Regulatory activities with the activities of the Audit Committee exer- ports on service procurement, technical competence reports And Risk ed every year in line with the Internal Audit Plan. General inspections the related department to be approved of activity schedule Presented cised during the period of the Bank, containing the views of remedi- Management Program, The Committee noted that the main purpose were completed at all Regional Offices within the frame of the 2018 to the committee. al measures regarding the Audit Committee’s annual reports to the of this report is to Within the framework of the Regulation on Support Internal Audit Plan. It was ensured that necessary instructions were is- Board of Directors has been presented. Our Bank’s Units, “Organization, Duties and Authority Directive” and In Service Centers Our evaluations are made by our Bank related service sued with respect to crucial matters according to the results of general Independence in the activities of independent audit institutions and their defined duties, both legislation and implementation Due to the units It is reported. inspections conducted by Regional Offices. changes that occurred as a result, the related units and reconciliations of the adequacy of allocated resources associated with the Bank on The “Support Services Risk Management Program hazırlanan prepared Committee of inspection; It examines important changes within the a quarterly basis to the Board of Directors the evaluation report has Unit Based Business Flow Schemes revised in the context of the Audit by the Risk Management Department was reviewed and discussed by Bank and informs the Senior Management about the issues to be fol- been presented. Committee Management of the related department in the context of our Committee the program was submitted to the Board of Directors lowed. In this way, it contributes to the decision-making process. In the evaluation Presented to the committee. for approval and, if decided by the Board of Directors, the appointment Support services taken by the Bank in relation to competence and Risk 2017, 15 (fifteen) investigations / investigations were transferred and of the Risk Management Department to inform the Senior Manage- Assessment Report has been presented to the Board of Directors. The Audit Committee, prepared by the Internal Control Department, To in 2018, 19 (nineteen) new investigations / investigations were initiat- be approved by the “Internal Control Department Control Guide” Pre- ment and related Service Units was submitted to the Board of Direc- 2017 of the BSD period (1 January to 31 December 2018) Governance ed. As of the reporting period of 2018, 27 (twenty seven) Investigations sented to the Board of Directors by the relevant Department. tors. Statement, Management Statement Report and Report Annexes, is / Investigations have been finalized and 7 (seven) Investigations / In- approved and has been submitted to the Board for submission to the The Internal Control Department, prepared by the Internal Control In accordance with the decision of the Asset-Liability Committee sub- vestigations are ongoing. Independent Auditor, it was handed over to the Independent Audit au- Department, Presidency 2017 Annual Report “Evaluation of the Au- mitted to the Committee by the Risk Management Department, the thorities by the Audit Committee. dit Committee Presented to the Board of Directors as per the relevant Bank’s future cash projection estimates prepared for the 12-month Internal Control department Presented to the committee. period were submitted to the Board of Directors by the Risk Manage- Internal Control activities are organized effectively within the frame- The year 2018 BSD period (January 1-December 31, 2018) for 2019 ment Department to contribute to the decision-making processes of Three Monthly Activity Evaluation Reports of the Inspection Board, work of the Banking Law no. 5411 and BRSA “Regulation on the In- of January until the end of the Board of Directors organized which will the Board of Directors. be submitted to the Independent Audit Firm Governance Statement of Presented to the Board of Directors together with the opinion of the ternal Systems and Internal Capital Adequacy Assessment Procedures is related regulations and work to be performed within the principles Audit Committee And the Banking Regulation and Sent to the Super- Our bank is responsible to the Audit Committee As a result of the re- of Banks”. visory Authority. porting period; contained in the Communiqué made, studies by the Audit Committee The Internal Control Department is staffed by a total of 38 people, 20 scrupulously it is followed. The “December 2017 Risk Matrix” prepared by the Inspection Board 9 Risk Analysis Reports by the Risk Management Department Assess- of which are personnel including 1 Department Director, 1 Senior As- Information Systems and Banking Processes Audit Report for 2017 Risk Assessment Report “and” 2018 Annual Internal Audit Plan “ And ments made by the Audit Committee Risk analysis reports “mentioned sociate, 3 Directors, 1 Lawyer, 6 Technical Associates, 7 Associates and Accounting Period and Details on Findings in Control Weakness Class, the report and plan, to be put into force Management Submitted to the in the In the case of Support Service Establishment and Regional Di- 1 Clerk, accompanied by 1 internal control staff for each of the regional Guidance Independent Audit and Chartered Accountant A.Ş. RE Infor- approval of the Board and subject to our Notice of Obligations Sent to rectorates / Taking into account the activities to be carried out by the directorates, appointed to carry out internal control activities, and aims mation Systems and Banking Processes Audit Report (REVISE) for the the Banking Regulation and Supervision Agency. Departments and taking risk-reducing measures, the date of 2015/3 to ensure the protection of the Bank’s assets, execution of activities in Period 1 January-31 December 2017 ”, Revised Financial Statements Support Services Department, which is updated by the Department dated 14.01.2015 “Our Bank’s Circular” and “Support Services for compliance with the legislation, regulatory arrangements, the Bank’s for the Year 2017 and Independent Auditor’s Report and Unconsoli- and Risk Management Department presented to the Audit Committee Banks” Regulation on the Regulation “ Service units. internal policies, strategies and objectives, and guaranteeing secure dated Financial Statements for the Year 2018 Audit Reports have been by the Chairman, Business Continuity and Committees contained in In accordance with the relevant regulations by the Audit Committee establishment of the accounting and recording system, as well as of 72 73

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Financial Information and Risk Management Financial Information and Risk Management

the financial reporting system, and the efficiency and effectiveness of reports from Domestic Service Unit examined by the Internal Control Senior Management and the Departments responsible for the forma- utilization levels and the total risk position, as well as the Back testing operations. Department staff, after being consolidated to the Audit Committee, the tion and monitoring of risk. report run daily in order to verify the accuracy of the model employed to estimate the Exposed Value (RMD) in the Market Risk report, are With a view to serving these objectives, the execution of bank’s oper- Board of Directors and are presented in the form of monthly activity The Risk Assessment Report covers the Bank’s financial structure, reports to Senior Management. submitted daily to the Risk Management Department Director, where- ations at the Head quarters and Domestic Service Units, in accordance capital, shareholders’ equity adequacy, quality of assets and resources, as the Marginal RMD and Incremental RMD estimation reports are with applicable standards, and the provisions of regulations and guide- Internal Control Department, should the basic responsibility of the credit operations carried out in accordance with the functional orga- submitted on a weekly basis. lines is reported on a monthly basis, with reference to the “Standard compliance function; In order to make the changes needed in the nization, revenue-expense equilibrium and profitability, fund manage- Control Form and Notes”, by operations staff specified as internal con- process due to changes in legal regulations and ensure informed the ment, liquidity, sensitivity to market risks, as well as other risks the Reporting required by BRSA under Basel II; FR400AS: From Banking trol officer, as well as the internal control staff, in line with the sampling relevant departments. changes in the legislation if deemed necessary bank may incur in its primary fields of activity, and relevant statements. Account Interest Rate Risk Standard Ratio Notification Table, KR520AS: methodology. The reports thus drawn up are reviewed by Internal Con- by the Internal Control Department and is also sent in writing to the Credit Risk Standardized Approach-Kra Simple Method, OR500YS: Op- The Market Risk Estimation Report analyzes the impact the changes in trol staff, and submitted to the Audit Committee, Board of Directors, relevant unit. erational Risk Analysis, OZ530 AS: Equity Analysis Form, SY520AS: the markets would have on the Bank’s portfolio, as well as reviews the and Senior Management as monthly activity reports. Capital Adequacy Analysis Form arranged to be forwarded to the BRSA Also, for Headquarters and domestic activities planned to be carried market risks which may affect the Bank, the results of the market risk out BVTS for Accounting and Financial Affairs Directorate and sent to Aiming to carry out the activities in a healthier manner, control points out with new products and processes of the service unit before re- estimations, and the impact these results would have on the balance Financial Reporting. BRSA dated 18.04.2016 sent by the Banks Asso- have been revised and existing control points were re- viewed in view ceiving approval of the Board, 5411 Act, other relevant regulations, in sheet items. ciation of Turkey and 49960598-201.01-text reference to PR500AS of the determinations, opinions and feedback of the process owners compliance matters to the bank’s internal policies and banking practic- The Risk Limits Monitoring Report provides over sight regarding the No. E.5903, the preparation of PR502AS and PR504AS forms have carrying out the activities, in particular. es Internal Control Department to ensure receiving the opinion of the limits and early warning limits set in the “Risk and Authority Limits Im- been suspended until further notice. Presidency, be informed of all the units in order 2013/8 dated circular is The Control Objectives for Information and Related Technology (COBIT) plementation Procedures” of the Bank. published, evaluated by future vision demands Presidency staff for the The Bank was exempted, as a response to the written re- quest for based Information Systems Control Objectives were set up for use in activities they plan to perform with new products and jobs of the unit, Credit Risk Analysis Report; return of the Bank disbursed credit risks, exemption filed with BRSA, from the obligations regarding the Stress the internal control activities of the Information Technologies Depart- Risk Management, adding the opinion of the Chairman of the Depart- whether the breach in the overall limit set by the Bank’s credit policy Testing and Internal Capital Adequacy Evaluation Procedure (ISEDES) ment. These were finalized through the self-assessment meetings ment, the Audit Committee of channels are transmitted to the unit re- and risk concentration is analyzed. reporting it has before the BRSA as per articles 43 and 48 of the Reg- between the relevant Department officials and the Internal Control lated. Within this scope, one opinion was given regarding the activities ulation on the Internal Systems and Internal Capital Adequacy Assess- Department staff, and were duly put into use as of year 2014. New Published by BRSA “Guidelines on Operational Risk Management” in planned by the Department of International Relations in 2018. ment Procedures, applicable at the end of the year. control objectives have been created, whose controls have com- the 46th article of the necessary Presidency six-month period in the The Risk Analysis Report of the Head Office and Regional Directorates menced. The Information Technologies Department’s internal control “Operational Risk Monitoring Report” prepared the Board are present- is prepared and sent to the Audit Committee in accordance with the activities carried out with reference to the control objectives based on Risk Management ed to and sent to information Data Processing Department and Senior written request received from the Audit Committee in accordance with COBIT are executed monthly, quarterly, six monthly and annually by the Risk Management activities are organized, taking into account the ex- Management with the aim to obtain the Presidency. the Regulation Regarding Banks’ Receiving Support Services by the Internal Control Department personnel. ceptions for the Development and Investment Banks specified in the With the aim of providing access by Senior Management to the reports Risk Management Department and Circular No: 2015/3 of 14 January Banking Law no .5411 and exemptions specified in the Banking Law “Year 2018 Risk Assessment and Internal Control Program” has been issued by the Risk Management Department, a module was created 2015. prepared and adopted by the Board on 11 January 2018 and decision no. 6107, on the basis of regulations, communiqué, manual and other within Bank Management Information Systems, which all reports pre- The “Asset and Liabilities Committee” was established through a Board No. 3/45. “2018 Year of the Internal Control Program” in accordance legislative provisions issued by BRSA for the execution of Banking Law pared since January 2013 were stored within. of Directors resolution, in order to establish the policies regarding the with the internal control activities relating to Headquarters Service no. 5411, and other legislative provisions, and the provisions of this The standard method is applied for the estimation and reporting of management of the Bank’s assets and liabilities, as well as relevant Units by the Internal Control Department in April 2018, August 2018 regulation, in accordance with internal legislation provisions issued by the market risk. Furthermore, within the framework of internal mod- fund transfers, by taking into account the Bank’s finances, portfolio, and including December 2018 control period, May 2018, September the Board of Directors. els, RMD Analyses, Parametric Method, Historical Simulation Method, as well as the developments concerning the loan interest rates, and in 2018 and is scheduled to be held in January 2019 month, in this con- Risk Management Department, 1 Head of Department, 3 Director, 7 Monte Carlo Simulation Method, Stress Testing & Scenario Analyses, capital and financial markets, as well as the developments concerning text, Services Unit of the Directorate General of internal control activi- Expert 2 Technical Specialist, 1 Management Personnel, 1 office with Limit System (Triple Limit) are also used, and the findings are reported the Bank and other Banks, and also to take the decisions to be imple- ties in the month of May 2018 to April 2018 for the control period, the a staff of 15 people including staff, to design the risk management to the Senior Management on a monthly basis, since May 2012. Fur- mented by relevant departments with a view to managing the Bank’s control activities related to the period August 2018 check was carried system and implement, to identify the risks faced by the Bank, to thermore, in order to provide a more effective analysis regarding the balance sheet, and to oversee the implementation thereof. The duty of out by the internal control staff in the month of September 2018. measure, analyze, monitor and report on, the controllable and uncon- risk assessment, Interest Sensitive GAP Analysis and RAROC Analy- providing secretariat services for the Committee was, in turn, assigned The internal control activities related to the period December 2017 In- trollable make warnings in order to reduce risks, the design of a basic ses are also submitted to the Senior Management on a monthly ba- to the Risk Management Department. tool that risk measurement models in the risk management process, sis, through the “Market Risk Estimation Report and Risk Assessment ternal Control Department in the month of January 2018 will be held Risk Management Department maintains its efforts to enhance the in the Presidency appointed internal control staff by the Directorate selection, implementation, and to participate in the process of grant- Report”. ing preliminary approval, models, reviewing on a regular basis, scenario contribution of the results of Risk Management activities in the Bank’s General Services Unit. Headquarters Service Units in internal control The Risk Management Department staff reviews the Bank’s trading decision-making processes, and its efficiency in terms of management analyze and make changes by performing retrospective testing. staff of the term controller is not appointed, two directors appointed as portfolio on a daily basis. Reports detailing the valuation results, limit processes. Standard Control Points Responsible Staff in the unit (administrative, In accordance with the provisions of paragraph 3 of Article 45 of the technical) standards by belonging to the Unit Control Points and inter- Yönetmelik Regulation on Internal Systems and Internal Capital Ade- nal control activities over contained within checkpoints are performed. quacy Assessment of Banks tarafından by the Risk Management De- Domestic Services Unit in the Presidency orders assigned to an inter- partment, “Risk Assessment Report”, “Market Risk Calculation Report”, nal control staff, again with Standard Control Point two directors ap- “Risk Limits Monitoring Report her The “Credit Risk Monitoring Report pointed as Staff Officer (administrative, technical) by monthly periods if hazırlanan, which is prepared monthly in accordance with Article 23 (i) performed their allotted reporting is out of control points Internal Con- of the Risk Management Department in the Bank’s Organization Du- trol Department are submitted to the Presidency. Headquarters and ties and Authorities Directive, is submitted to the Board of Directors, 74 75

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Independent Audit Report Independent Audit Report 76 77

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Independent Audit Report Independent Audit Report 79

ILLER BANK ANNUAL REPORT 2018

Iller Bank Non-Consolidated Financial Report For The Year Ended On 31 December 2018

Address : Kızılırmak Mah. Ufuk Üniversitesi Caddesi No:12 Çukurambar Çankaya /Ankara Phone : (312) 508 70 00 Fax : (312) 508 73 99 Website : www.ilbank.gov.tr Email : [email protected] The end-of-year non-consolidated financial report drawn up in accordance with Banking Regulation and Supervision Agency ”Communiqué on Financial Statements the Banks shall Disclose to the Public, and Remarks and Footnotes Regarding Such Statements” comprises the following sections: 1. General Information Regarding the Bank 2. Bank’s Non-Consolidated Financial Statements 3. Remarks on the Accounting Policies Implemented in the Period in Question 4. Information Regarding the Financial Structure of the Bank 5. Remarks and Footnotes Regarding Non-Consolidated Financial Statements 6. Other Remarks 7. Independent Audit Report About explanations and notes Principles and Procedures for Safeguarding and documents Accounting Applications for these financial statements are not consolidated in this report Regulation, Turkey Accounting Standards, Turkey Financial Reporting Standards, in accordance with the addition and reviews the Bank’s records relating to them, unless otherwise stated Thousan- ds of Turkish Lira (TRL) and it has been audited and enclosed.

The contact details of the officer who will act as the contact person for the questions regarding this financial report: Full Name/ Title : Mesut ÇELİK/Director & Ümit BİLGE/Specialist Phone : (0312) 508 74 07-0312 508 74 15 Fax : (0312) 397 47 83 80 81

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

SECTION ONE / General Information SECTION FOUR / Financial Structure

I. A brief history of the Bank’s formation, initial status and subsequent changes in that status...... 82 I. Explanations about equity items...... 116 II. The Bank’s capital structure, shareholders having direct or indirect control over the Bank’s management and audit on their II. Explanations on credit risk...... 122 own or jointly, and information about any changes therein during the year and about the group the Bank belongs to...... 82 III. Explanations on currency risk...... 130 III. Disclosure regarding the areas of responsibility of the Bank’s chairman, board members, audit committee members, general manager, and vice IV. Explanations on interest rate risk...... 132 presidents and shares, if any, they hold in the Bank...... 82 V. Explanations on the position risk of common stock...... 134 IV. Information regarding the individuals and organizations controlling qualified shares in the Bank...... 84 VI. Explanations Regarding the Liquidity Risk Management and Liquidity Payment Ratio...... 135 V. Summary information about the Bank’s services and areas of activity...... 84 VII. Explanations about Financial Leverage Ratio...... 140 VI. Differences between the communiqué on preparation of consolidated financial statements of Banks and Turkish Accounting Standards and short VIII. Representation of Financial Assets and Liabilities at Fair Value...... 141 explanation about the entities subject to full consolidation or proportional consolidation and entities which are deducted from equity or entities IX. Explanations on transactions entered on behalf and account of others; fiduciary transactions...... 141 which are not included in these three methods:...... 84 X. Explanations on risk management...... 142 VII. The existing or potential, actual or legal obstacles on the immediate transfer of shareholder’s equity between the Bank and its subsidiaries or reimbursement of liabilities:...... 84 SECTION FIVE / Remarks and Footnotes Regarding Non-Consolidated Financial Statements

I. Remarks and footnotes on balance sheet asset items...... 156 SECTION TWO / Non-Consolidated Financial Statements II. Remarks and footnotes on balance sheet liability items...... 168 I. Balance sheets (Financial status statement) (EK5-A)...... 86 III. Remarks and footnotes on off-balance sheet accounts...... 172 II. Statement of off-balance sheet items (EK5-B)...... 90 IV. Remarks and footnotes on the income statement...... 174 III. Income statement (EK5-C)...... 94 V. Remarks and footnotes on the equity change statement...... 178 IV. Income statement accounts recognized in shareholders’ equity (EK5-Ç)...... 96 VI. Remarks and footnotes on the cash flow statement...... 179 V. Statement of changes in shareholders’ equity (EK5-D)...... 98 VII. Remarks on the risk group of the Bank...... 180 VI. Cash flow statement (EK5-E)...... 102 VII. Profit distribution statement (EK5-F)...... 104 VIII. Remarks on the Bank’s domestic, foreign, off-shore branches and representative offices and subsidiaries...... 180

ÜÇÜNCÜ BÖLÜM / Muhasebe Politikaları SECTION SIX / Other Information

I. Presentation principles...... 106 I. Further remarks on the Bank’s activities...... 181 Financial instruments utilization strategies and transactions denominated in foreign currencies...... 106 II. Summary information on the rating assigned to the Bank by international rating agencies...... 181 III. Remarks on forward and option contracts, derivatives...... 107 IV. Remarks on interest income and expenses...... 107 SECTION SEVEN / Independent Audit Report V. Remarks on fee and commission income and expenses...... 107 VI. Remarks on financial assets...... 107 I. Disclosures about the independent audit report...... 182 VII. Remarks on value impairments in financial assets...... 109 II. Remarks and footnotes of the independent auditor...... 182 VIII. Remarks on netting financial assets...... 109 IX. Remarks on sale and repurchase agreements, security lendings...... 109 X. Information on assets held for sale and fixed assets associated with discontinued operations and remarks on obligations concerning these assets...... 109 XI. Remarks on goodwill and other intangible fixed assets...... 110 XII. Remarks on tangible fixed assets...... 110 XIII. Remarks on leasing transactions...... 111 XIV. Remarks on provisions and contingent liabilities...... 111 XV. Remarks on obligations related to employee entitlements...... 111 XVI. Remarks on tax-related issues...... 112 XVII. Additional remarks on borrowings...... 113 XVIII. Remarks on issued stocks...... 113 XIX. Remarks on endorsements and acceptances...... 113 XX. Remarks on government subsidies...... 113 XXI. Remarks on the headings used in this report...... 114 XXII. Remarks on other matters...... 114 82 83

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Work Experience in the field Departed from Full Name Position Appointed on Education of Banking and Business Office on Ad-ministration

Audit Committee

Chairman/President of Auditing Commit-tee-Risk SECTION ONE Mehmet YEREBAKAN(4) Management Department Presi-dent-Internal Audit 26 July 2018 Master’s Degree 23 Years Department President-Auditing Committee Office Manager.

Member /President of Auditing Commit-tee-Risk Oğuzhan YILDIZ(5) Management Department Presi-dent-Internal Audit 16 August 2018 Master’s Degree 19 Years Department President-Auditing Committee Office Manager.

General Information Regarding the Bank Veli BÖKE Member 23 March2017 10 August 2018 Master’s Degree 20 Years

I. A brief history of the Bank’s formation, initial status and subsequent changes in that status Refik TUZCUOĞLU Chairman 6 October 2016 16 July 2018 Bachelor’s Degree 19 Years (4) With the resolutions of the Board of Directors dated July 26, 2018 and numbered 477, Mehmet YEREBAKAN was elected to replace Refik TUZCUOĞLU with the Chairmanship of the Audit Committee. Iller Bank (“Bank”) was originally incorporated as “Belediyeler Bankası” (Municipalities Bank) under the Law no. 2301 on 11 June 1933. The (5) Board of Directors Member Oğuzhan YILDIZ was elected as a Member of the Audit Committee instead of Veli BÖKE who resigned from the Board of Directors with the resolutions of the Board of Directors dated August 16, 2018 and numbered 19/535. Bank was reincorporated under the Law no. 4759 concerning Iller Bank dated 13 June 1945 with its new name “Iller Bank” (“Provinces Bank”), which also reflected its expanded duties, authorities, and responsibilities With the Law no. 6107 governing Iller Bank INC.. (the Work Experience in the Bank’s governing law) that entered into force upon its publication in the Official Gazette issue 27840 dated 8 February 2011, it was rein- Departed from Full Name Position Appointed on Education field of Banking and Office on corporated into Iller Bank Anonim Şirketi joint stock company while its duties, authorities and responsibilities were maintained. Business Ad-ministration General Manager and Assistant General Manager

II. The Bank’s capital structure, shareholders having direct or indirect control over the Bank’s management General Manager / legal consultancy Yusuf BÜYÜK 8 August 2016 Master’s Degree 21 Years and audit on their own or jointly, and information about any changes therein during the year and about the – Press and Public Relations Directorate AGM / Accounting and Financial Affairs - group the Bank belongs to Salih YILMAZ Department of Human Resources.- Banking 17 April2014 Bachelor’s Degree 26 Years Services Department Pursuant to the Bank’s governing law no. 6107, the Bank’s capital consists of 2% monthly deductions to be made from the total shares of AGM / Head of Investment Coordinating- the tax revenues to be distributed every month by the Ministry of Finance and Iller Bank under the Law no. 5779 on Allotments of General Selahattin ÖZSOY Capital Evaluation Department - Support 6 March 2017 Master’s Degree 27 Years Services Department Budget Revenues to be Allocated to Special Provincial Authorities and Municipalities dated 2 July 2008, and of 30% of the Bank’s annual AGM / International Relations Department.- In- Emrah BAYDEMİR 26 April 2018 Master’s Degree 10 Years profits. For this reason, there is no capital group, which has either direct or indirect control over the Bank’s capital. formation Technology Department - R & D Board AGM Proxy / Department of Spatial Plan- 24 September III. Disclosure regarding the areas of responsibility of the Bank’s chairman, board members, audit committee Nurullah ÖZTÜRK ning. - Department of Pavement Applica- Bachelor’s Degree 13 Years 2018 tions.- Resource Development Department members, general manager, and vice presidents and shares, if any, they hold in the Bank GMY Proxy / Department of Infrastructure Volkan BEKTAŞ Applications. - Project Department. - 18 January 2019 Master’s Degree 21 Years Planning and Coordination Department Departed from Work Expe-rience in the field of Ban-king Full Name Position Appointed on Education Office on and Busi-ness Admi-nistration Dr. Ender Aykut YILMAZ AGM 17 April 2014 7 January 2019 Ph.D 20 Years

Hakan ÇOLAK AGM 21 May 2014 7 January 2019 Master’s Degree 17 Years Board Of Management M. Ferit YÜKSEL AGM / Istanbul Regional Manager 17 November 2014 24 September 2018 Master’s Degree 14 Years Ertan YETİM(1) Board Chairman 16 July 2018 Bachelor’s Degree 30 Years

Mehmet YEREBAKAN(2-3) Vice Board Chairman 22 May 2014 Master’s Degree 23 Years Work Experience in the field of Banking Full Name Position Appointed on Departed from Office on Education Yusuf BÜYÜK Board Member-General Manager 8 August 2016 Master’s Degree 21 Years and Business Ad-ministration

Mücahit DEMİRTAŞ Board Member 29 September 2016 Bachelor’s Degree 20 Years Supervisory Board

(3) Fehmi Hüsrev KUTLU Board Member 22 May 2014 Bachelor’s Degree 4 Years Turan KONAK Member 10 August 2018 Bachelor’s Degree 11 Years

Oğuzhan YILDIZ Board Member 10 August 2018 Master’s Degree 19 Years Fatih ÖZGÖKÇEN Member 10 August 2018 Master’s Degree 13 Years

İlker EREN Board Member 10 August 2018 Ph.D 24 Years Muzaffer CENGİZ Member 12 April 2010 10 August2018

Veli BÖKE Board Member 29 September 2016 10 August 2018 Master’s Degree 20 Years Ahmet ZENBİLCİ(6) Member 18 October 2016 26 April 2018

Yusuf DAĞCAN Board Member 5 May 2017 10 August 2018 Bachelor’s Degree 39 Years Abdurrahman MADAN(7) Member 14 December 2016 17 July 2018 Master’s Degree 21 Years

Refik TUZCUOĞLU Vice Board Chairman 29 September 2016 16 July 2018 Bachelor’s Degree 19 Years (6) Ahmet ZENBİLCİ 26 Nisan 2018 tarihinde Milletvekili aday adaylığı başvurusu için görevinden istifa etmiştir. (1) T. C. Ertan YETİM was appointed as the Board Member of the Bank instead of Refik TUZCUOĞLU by the Ministry of Environment and Urbanization on July 16, 2018, and Mücahit DEMİRTAŞ was appointed as a (7) Abdurrahman MADAN 17 Temmuz 2018 tarihinde istifaen görevinden ayrılmıştır. Member of the Board of Directors by the Board of Directors. was elected Chairman of the Board of Directors. (2) With the resolutions of the Board of Directors dated July 26, 2018 and numbered 17/476, Mehmet YEREBAKAN was elected as the Vice Chairman of Refik TUZCUOĞLU. (3) At the Ordinary General Assembly of the Bank held on 6 July 2017, Fehmi Hüsrev KUTLU representing the Municipalities and Mehmet YEREBAKAN representing the Special Provincial Administrations were re-elected as Board Members. Banka’nın yönetim kurulu başkan ve üyeleri, denetim kurulu üyeleri, genel müdür ve genel müdür yardımcılarının Banka kuruluş kanunu gereği Banka’da sahip oldukları pay yoktur. 84 85

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

IV. Information regarding the individuals and organizations controlling qualified shares in the Bank: SECTION TWO As per the Bank’s governing law no. 6107, the Bank’s capital consists of 2% monthly deductions from the total shares of the taxrevenues to be distributed every month by the Ministry of Finance and Iller Bank under Law no. 5779 on Allotments of GeneralBudget Revenues to be Allocated to Special Provincial Authorities and Municipalities dated 2 July 2008; out of the Bank’s nominalcapital of TRL 18,000,000, TRL 14.847.536 had been paid-in as of 31 December 2018. The Bank’s capital consists of the deductions made from municipalities and NON-CONSOLIDATED FINANCIAL STATEMENTS special provincial authorities as per the legislation named above, and it is not divided into shares. I. Balance sheets (Financial status statement) (EK5-A) V. Summary information about the Bank’s services and areas of activity: II. Statement of off-balance sheet items (EK5-B) KThe Bank has the status of a development and investment bank. Its fields of operations are defined in the Bank’s governing law no. 6107 as “satisfying the financing need of special provincial authorities, municipalities and their affiliated organizations andlocal administrative III. Income statement (EK5-C) associations of which only these may be members; develop projects concerning locally-provided commonservices for the people dwelling IV. Income statement accounts recognized in shareholders’ equity (EK5-Ç) within the boundaries of such administrations; providing such administrations with consultancy services and assistance on urban projects of a technical nature and in the conduct of infrastructure and superstructure works,and performing any and all development and invest- V. Statement of changes in shareholders’ equity (EK5-D) ment banking functions”. Within this framework, the Bank may do the following: VI. Cash flow statement (EK5-E) • Extend any and all types of short-, medium-, and long-term cash and non-cash loans to its shareholders, VII. Profit distribution statement (EK5-F) • Conduct, or arrange for the conduct of, research, project development and consultancy services in its fields of activity, and provide technical assistance in the same, • Lead the way in the formation of companies as a bank, and transfer control of them, • Act as an insurance agent, • Open branches and representative offices in Turkey and abroad, provided that necessary approvals are obtained, • Cooperate with domestic and/or foreign financial institutions, become a member of national and international organizationsof which they are members, • Obtain resources from domestic and international financial institutions, money and capital markets, and any and all funds, • Perform any and all development and investment banking transactions that would support the achievement of its objectives, • Develop projects and construct special projects and urban infrastructure projects demanded by the Ministry, or arrange for the development and construction there of, • Execute, or arrange for the execution of, profit-making real estate investment projects and implementations in order to obtain funds for the Bank, provided that it shall not incur any debts or enter into any conditional obligation in doing so, • Carry out other activities set out in its Articles of Incorporation.

VI. Differences between the communiqué on preparation of consolidated financial statements of Banks and Turkish Accounting Standards and short explanation about the entities subject to full consolidation or proportional consolidation and entities which are deducted from equity or entities which are not included in these three methods:

Not applicable.

VII. The existing or potential, actual or legal obstacles on the immediate transfer of shareholder’s equity between the Bank and its subsidiaries or reimbursement of liabilities:

Not applicable. 86 87

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

İLLER BANKASI A.Ş İLLER BANKASI A.Ş 31 Aralık 2018 Tarihi İtibarıyla Konsolide Olmayan Bilançolar (Finansal Durum Tablosu) 31 Aralık 2017 Tarihi İtibarıyla Hazırlanan Konsolide Olmayan Finansal Raporu (Tutarlar aksi belirtilmedikçe Bin Türk Lirası (TL) olarak ifade edilmiştir) (Tutarlar aksi belirtilmedikçe Bin Türk Lirası (TL) olarak ifade edilmiştir)

Independently Audited Independently Audited Current Period 31.12.2018 Previous period 31.12.2017 ASSETS Footnote TRY FX Total ASSETS Footnote TRY FX Total I. FINANCIAL ASSETS (Net) 2.715.092 124.434 2.839.526 I. CASH AND BALANCES WITH THE CENTRAL BANK OF TURKEY V-I-a 275 - 275 1.1 Cash and Cash Equivalents 2.713.078 124.434 2.837.512 II. FINANCIAL ASSETS AT FAIR VALUE THROUGH P/L (Net) V-I-b - - - 1.1.1 CASH AND BALANCES WITH THE CENTRAL BANK OF TURKEY V-I-a 217 - 217 2.1 Financial Assets Held for Trading - - - 1.1.2 Banks V-I-ç 2.712.861 124.434 2.837.295 2.1.1 Government Debt Securities - - - 1.1.3 MONEY MARKET PLACEMENTS - - - 2.1.2 Securities Representing Share of Capital - - - 1.2 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value V-I-b 2.014 - 2.014 2.1.3 Derivatives Held for Trading - - - 1.2.1 Government Debt Securities - - - 2.1.4 Other Securities - - - 1.2.2 Securities Representing Share of Capital - - - 2.2 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value - - - 1.2.3 Other Securities 2.014 - 2.014 2.2.1 Government Debt Securities - - - 1.3 Financial Assets at Fair Value Through Other Comprehensive Income V-I-d-e - - - 2.2.2 Securities Representing Share of Capital - - - 1.3.1 Government Debt Securities - - - 2.2.3 Loans - - - 1.3.2 Securities Representing Share of Capital - - - 2.2.4 Other Securities - - - 1.3.3 Other Securities - - - III. BANKS V-I-ç 1.739.858 39.332 1.779.190 1.4 Financial Assets measured at amortized cost V-I-g - - - IV. MONEY MARKET PLACEMENTS - - - 1.4.1 Government Debt Securities - - - 4.1 Interbank Money Market Placements - - - 1.4.2 Other Securities - - - 4.2 ISE Settlement Market Placements - - - 1.5 Derivative Financial Assets V-I-c - - - 4.3 ISE Settlement Market Placements - - - 1.5.1 Part Of Derivative Financial Assets At Fair Value Through Profit Or Loss - - - V. AVAILABLE-FOR-SALE FINANCIAL ASSETS (Net) V-I-d-e 474 - 474 1.5.2 Fair Value Differences Of Derivative Financial Assets Reflected To Other Comprehensive Income - - - 5.1 Securities Representing Share of Capital - - - II. LOANS (Net) 25.826.372 2.465.349 28.291.721 5.2 Government Debt Securities - - - 2.1 LOANS V-I-f 25.823.133 2.465.349 28.288.482 5.3 Other Securities 474 - 474 2.1.1 Measured by Redeemed Cost 25.823.133 2.465.349 28.288.482 VI. LOANS AND RECEIVABLES V-I-f 20.758.996 1.650.962 22.409.958 2.1.2 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value - - - 6.1 LOANS AND RECEIVABLES 20.758.996 1.650.962 22.409.958 2.1.3 Fair Value Differences Reflected In Other Comprehensive Income - - - 6.1.1 Loans Extended to the Bank's Risk Group - - - 2.2 RECEIVABLES FROM LEASING TRANSACTIONS V-I-i 3.239 - 3.239 6.1.2 Government Debt Securities - - - 2.2.1 Leasing Receivables - - - 6.1.3 Other 20.758.996 1.650.962 22.409.958 2.2.2 Operational Lease Receivables 3.239 - 3.239 6.2 Non-Performing Loans 549 - 549 2.2.3 Unearned Revenues (-) - - - 6.3 Specific Provisions (-) 549 - 549 2.3 Factoring Receivables - - - VII. FACTORING RECEIVABLES - - - 2.3.1 Measured by Redeemed Cost - - - VIII. INVESTMENTS HELD TO MATURITY (Net) V-I-g - - - 2.3.2 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value - - - 8.1 Government Debt Securities - - - 2.3.3 Fair Value Differences Reflected In Other Comprehensive Income - - - 8.2 Other Securities - - - 2.4 Frozen Receivables - - - IX. SUBSIDIARIES (Net) V-I-ğ - - - 2.5 Specific Provisions (-) - - - 9.1 Recognized in accordance with the equity method - - - III. FIXED ASSETS HELD FOR SALES OR WHICH ARE ASSOCIATED WITH DISCONTINUED OPERATIONS (Net) V-I-o - - - 9.2 Non-Consolidated - - - 3.1 For Sale - - - 9.2.1 Fınancial Subsidiaries - - - 3.2 Associated with Discontinued Operations - - - 9.2.2 Non-Fınancial Subsidiaries - - - IV. SHAREHOLDING INVESTMENTS - - - X. AFFILIATED CORPORATIONS (Net) V-I-h - - - 4.1 SUBSIDIARIES (Net) V-I-ğ - - - 10.1 Non-Consolidated Financial Corporations - - - 4.1.1 Recognized in accordance with the equity method - - - 10.2 Non-Consolidated Non-Financial Corporations - - - 4.1.2 Non-Consolidated - - - XI. CORPORATIONS UNDER JOINT CONTROL (JOINT V-I-ı - - - 4.2 AFFILIATED CORPORATIONS (Net) V-I-h - - - 11.1 Recognized in accordance with the equity method - - - 4.2.1 Non-Consolidated Financial Corporations - - - 11.2 Non-Consolidated - - - 4.2.2 Non-Consolidated Non-Financial Corporations - - - 11.2.1 Fınancial Corporations - - - 4.3 CORPORATIONS UNDER JOINT CONTROL (JOINT V-I-ı - - - 11.2.2 Non-Fınancial Corporations - - - 4.3.1 Recognized in accordance with the equity method - - - XII. RECEIVABLES FROM LEASING TRANSACTIONS V-I-i 3.217 - 3.217 4.3.2 Non-Consolidated - - - 12.1 Leasing Receivables - - - V. TANGIBLE FIXED ASSETS (Net) V-I-k 197.328 - 197.328 12.2 Operational Lease Receivables 3.217 - 3.217 VI. INTANGIBLE FIXED ASSETS (Net) V-I-l 1.176 - 1.176 12.3 Other - - - 6.1 Goodwill - - - 12.4 Unearned Revenues (-) - - - 6.2 Other 1.176 - 1.176 XIII. DERIVATIVES FOR HEDGING V-I-j - - - VII. INVESTMENT PROPERTIES V-I-m 673.415 - 673.415 13.1 For Hedging Against Fair Value Risk - - - VIII. Current Tax Assets - - - 13.2 For Hedging Against Cash Flow Risk - - - IX. Deferred Tax Assets V-I-n 35.169 - 35.169 13.3 For Hedging Against Net Investment Risk Abroad - - - X. OTHER ASSETS V-I-ö 180.474 2.111 182.585 XIV. TANGIBLE FIXED ASSETS (Net) V-I-k 144.779 - 144.779 TOTAL ASSETS 29.629.026 2.591.894 32.220.920 XV. INTANGIBLE FIXED ASSETS (Net) V-I-l 2.516 - 2.516 15.1 Goodwill - - - Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial 15.2 Other 2.516 - 2.516 statements were given separately. XVI. INVESTMENT PROPERTIES( Net) V-I-m 295.425 - 295.425 XVII. TAX ASSETS V-I-n 96.883 - 96.883 The attached notes are complementary parts of these non-consolidated financial statements. 17.1 Current Tax Assets - - - 17.2 Deferred Tax Assets 96.883 - 96.883 XVIII. FIXED ASSETS HELD FOR SALES OR WHICH ARE ASSOCIATED WITH DISCONTINUED OPERATIONS (Net) V-I-o - - - 18.1 For Sale - - - 18.2 Associated with Discontinued Operations - - - XIX. OTHER ASSETS V-I-ö 254.461 1.511 255.972 TOTAL ASSETS 23.296.884 1.691.805 24.988.689

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. The attached notes are complementary parts of these non-consolidated financial statements. 88 89

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. Non-Consolidated Balance Sheets As Of December 31, 2018 (Financial Status Statement) Non-Consolidated Balance Sheets As Of December 31, 2017 (Financial Status Statement) (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited Current Period 31.12.2018 Previous Period 31.12.2017

LIABILITIES Footnote TRY FX Total LIABILITIES Footnote TRY FX Total I. DEPOSITS V-II-a - - - I. DEPOSITS V-II-a - - - 1.1 Deposits by the Bank's risk group - - - II. LOANS RECEIVED V-II-c 1.176.434 2.573.219 3.749.653 1.2 Other - - - III. MONEY MARKET FUNDS - - - II. DERIVATIVES LIAVILITIES FOR TRADING V-II-b - - - IV. ISSUED SECURITIES (Net) - - - III. LOANS RECEIVED V-II-c - 1.687.221 1.687.221 4.1 Bills - - - IV. MONEY MARKET FUNDS - - - 4.2 Asset Based Securities - - - 4.1 Interbank Money Market Funds - - - 4.3 Bonds - - - 4.2 ISE Settlement Market Funds - - - V. FUNDS 8.230.391 11.251 8.241.642 4.3 Fund Obtained from Repurchase Transactions - - - 5.1 Borrower Funds 8.674 - 8.674 V. ISSUED SECURITIES (Net) - - - 5.2 Other 8.221.717 11.251 8.232.968 5.1 Bills - - - VI. Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value V-II-b - - - 5.2 Asset Based Securities - - - VII. DERIVATIVE FINANCIAL LIABILITIES V-II-e - - - 5.3 Bonds - - - 7.1 Part Of Derivative Financial Liabilities At Fair Value Through Profit Or Loss - - - VI. FUNDS V-II-c 6.099.871 - 6.099.871 7.2 Fair Value Differences Of Derivative Financial Assets Reflected To Other Comprehensive - - - 6.1 Borrower Funds 2.761 - 2.761 VIII. FACTORING LIABILITIES - - - 6.2 Other 6.097.110 - 6.097.110 IX. LEASE RELATED LIABILITIES V-II-d - - - VII. MISCELLANEOUS LIABILITIES V-II-ç 157.810 3.246 161.056 9.1 Leasing Liabilities - - - VIII. OTHER LIABILITIES 412.339 15 412.354 9.2 Operational Lease Liabilities - - - IX. FACTORING LIABILITIES - - - 9.3 Other - - - X. LEASE RELATED LIABILITIES V-II-d - - - 9.4 Deferred Leasing Expenses (-) - - - 10.1 Leasing Liabilities - - - X. RESERVES V-II-f 183.829 - 183.829 10.2 Operational Lease Liabilities - - - 10.1 General Reserves - - - 10.3 Other - - - 10.2 Restructuring Reserve - - - 10.4 Deferred Leasing Expenses (-) - - - 10.3 Reserves for Employee Entitlements 105.585 - 105.585 XI. DERIVATIVES LIABILITIES FOR HEDGING V-II-e - - - 10.4 Technical Insurance Reserves (Net) - - - 11.1 For Heding Against Fair Value Risk - - - 10.5 Other Reserves 78.244 - 78.244 11.2 For Hedging Against Cash Flow Risk - - - XI. Current Tax Liabilities V-II-g 144.077 - 144.077 11.3 For Hedging Against Net Investment Risk Abdroad - - - XII. Deferred Tax Liabilities - - - LIABILITIES FOR FIXED ASSETS HELD FOR SALES OR WHICH ARE ASSOCIATED WITH DISCONTINUED XII. RESERVES V-II-f 486.206 - 486.206 XIII. V-II-ğ - - - OPERATIONS (Net) 12.1 General Reserves - - - 13.1 For Sale - - - 12.2 Restructuring Reserve - - - 13.2 Associated with Discontinued Operations - - - 12.3 Reserves for Employee Entitlements 99.305 - 99.305 XIV. SUBORDINATED CREDITS V-II-h - - - 12.4 Technical Insurance Reserves (Net) - - - 14.1 Credits - - - 12.5 Other Reserves 386.901 - 386.901 14.2 Other Debt Instruments - - - XIII. TAX LIABILITIES V-II-g 129.187 - 129.187 XV. OTHER LIABILITIES V-II-ç 1.317.116 4.278 1.321.394 13.1 Current Tax Liabilities 129.187 - 129.187 XVI. SHAREHOLDERS' EQUITY V-II-ı 18.580.325 - 18.580.325 13.2 Deferred Tax Liabilities - - - 16.1 Paid-In Capital 14.847.536 - 14.847.536 XIV. LIABILITIES FOR FIXED ASSETS HELD FOR SALES OR WHICH ARE ASSOCIATED WITH DISCONTINUED OPERATIONS (Net) V-II-ğ - - - 16.2 Capital Reserves 1.049.144 - 1.049.144 14.1 For Sale - - - 16.2.1 Share Premiums - - - 14.2 Associated with Discontinued Operations - - - 16.2.2 Share Premium of Cancelled Stocks - - - XV. SUBORDINATED CREDITS V-II-h - - - 16.2.3 Other Capital Reserve Funds 1.049.144 - 1.049.144 XVI. SHAREHOLDERS' EQUITY V-II-ı 16.012.794 - 16.012.794 16.3 Other comprehensive income or expenses that will not be reclassified to profit or loss - - - 16.1 Paid-In Capital 13.122.184 - 13.122.184 16.4 Other comprehensive income or expenses to be reclassified to profit or loss - - - 16.2 Capital Reserves 1.048.223 - 1.048.223 16.5 Profit Reserves 916.700 - 916.700 16.2.1 Share Premiums - - - 16.5.1 Legal Reserves 548.892 - 548.892 16.2.2 Share Premium of Cancelled Stocks - - - 16.5.2 Statutory reserves 367.808 - 367.808 16.2.3 Securities Valuation Surplus - - - 16.5.3 Contingency Reserves - - - 16.2.4 Tangible Fixed Assets Valuation Surplus 171.709 - 171.709 16.5.4 Other Profit Reserves - - - 16.2.5 Intangible Fixed Assets Valuation Surplus - - - 16.6 Profit or Loss 1.766.945 - 1.766.945 16.2.6 Valuation Surplus for Investment Properties - - - 16.6.1 Accumulated Profit or Loss 104.591 - 104.591 16.2.7 Bonus Shares in Subsidiaries, Affiliated Corporations and Jointly-Controlled Entities (Joint Ventures) - - - 16.6.2 Net Current Profit (Loss) 1.662.354 - 1.662.354 16.2.8 Hedge Funds (Active part) - - - 16.7 Net Current Profit (Loss) - - - 16.2.9 Accumulated Margins on Assets Held for Sale and Associated with Discontinued Operations - - - TOTAL LIABILITIES 29.632.172 2.588.748 32.220.920 16.2.10 Other Capital Reserve Funds 876.514 - 876.514 16.3 Profit Reserves 771.081 - 771.081 Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial 16.3.1 Legal Reserves 500.603 - 500.603 statements were given separately. 16.3.2 Statü Yedekleri 270.478 - 270.478 16.3.3 Statutory reserves - - - The attached notes are complementary parts of these non-consolidated financial statements. 16.3.4 Other Profit Reserves - - - 16.4 Profit or Loss 1.071.306 - 1.071.306 16.4.1 Accumulated Profit or Loss 85.498 - 85.498 16.4.2 Net Current Profit (Loss) 985.808 - 985.808 16.5 Minority Shares - - - TOTAL LIABILITIES 23.298.207 1.690.482 24.988.689

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. The attached notes are complementary parts of these non-consolidated financial statements. 90 91

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. As Of December 31, 2018 Unconsolidated Balance Sheet Accounts Statement As Of December 31, 2018 Unconsolidated Balance Sheet Accounts Statement (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited Current Period 31.12.2018 Current Period 31.12.2018

Footnote TRY FX Total Footnote TRY FX Total

A. OFF-BALANCE SHEET LIABILITIES (I+II+III) 7.630.482 6.017.865 13.648.347 3.2.1.1 Future Foreign Currency Buying - - -

I. GUARANTEES and WARRANTIES V-III-a 1.702.603 52.101 1754.704 3.2.1.2 Future Foreign Currency Selling - - - 1.1. Letters of Guarantee 1.702.603 52.101 1754.704 3.2.2 Cash and Interest Swaps - - - 1.1.1. Covered under State Tenders Law 4 - 4 3.2.2.1 Swap Money Purchase Transactions - - - 1.1.2. Extended for Foreign Trade Transactions - - - 3.2.2.2 Swap Money Sale Transactions - - - 1.1.3. Other Letters of Guarantee 1.702.599 52.101 1.754.700 3.2.2.3 Swap Interest Purchase Transactions - - - 1.2. Bank Loans - - - 3.2.2.4 Swap Interest Sale Transactions - - - 1.2.1. Import Acceptance Loans - - - 3.2.3 Cash, Interest and Security Value Options - - - 1.2.2. Other Banks' Acceptances - - - 3.2.3.1 Money Purchase Options - - - 1.3. Letters of Credit - - - 3.2.3.2 Money Sale Options - - - 1.3.1. Letters of Credit on Document - - - 3.2.3.3 Interest Purchase Options - - - 1.3.2. Other Letters of Credit - - - 3.2.3.4 Interest Sale Options - - - 1.4. Guaranteed Pre-finances - - - 3.2.3.5 Securities Purchase Options - - - 1.5. Endorsements - - - 3.2.3.6 Securities Sale Options - - - 1.5.1. Endorsements to the Central Bank of Turkey - - - 3.2.4 Futures Money Transactions - - - 1.5.2. Other Endorsements - - - 3.2.4.1 Futures Money Purchase Transactions - - - 1.6. Underwriting Commitments of the Securities Issued - - - 3.2.4.2 Futures Money Sale Transactions - - - 1.7. Factoring Related Guarantees - - - 3.2.5 Futures Interest Trading - - - 1.8. Other Guarantees - - - 3.2.5.1 Futures Interest Purchase Transactions - - - 1.9. Other Warranties - - - 3.2.5.2 Futures Interest Sale Transactions - - - II. COMMITMENTS V-III-a 5.927.879 5.965.764 11.893.643 3.2.6 Other - - - 2.1. Irrevocable Commitments 5.927.879 3.209.693 9.137.572 B. ASSETS IN CUSTODY OR UNDER LIEN (IV+V+VI) 6.225.637 833.774 7.059.411 2.1.1. Future Asset Value Trading Commitments - - - IV. ASSETS IN CUSTODY 5.280.633 829.003 6.109.636 2.1.2. Future Deposit Value Trading Commitments - - - 4.1. Client Funds and Portfolio Contents - - - 2.1.3. Commitments Regarding Subsidiaries, Affiliated Corporations and Jointly-Controlled Entities - - - 4.2. Securities in Custody - - - 2.1.4. Utilized Guaranteed Loan Extension Commitments 5.927.879 3.209.693 9.137.572 4.3. Checks Received for Collection - - - 2.1.5. Security Issues Intermediation Commitments - - - 4.4. Commercial Bonds Received for Collection - - - 2.1.6. Required Reserve Payment Commitments - - - 4.5. Other Assets Received for Collection - - - 2.1.7. Check Payment Commitments - - - 4.6. Securities Intermediated for Issuance - - - 2.1.8. Tax and Fund Liabilities due to Export Commitments - - - 4.7. Other Assets in Custody 5.255.648 829.003 6.084.651 2.1.9. Credit Card Expenditure Limit Commitments - - - 4.8. Receipients of Assets in Custody 24.985 - 24.985 2.1.10. Promotion Implementation Commitments Regarding Credit Cards and Banking Services - - - V. ASSETS UNDER LIEN 945.004 4.771 949.775 2.1.11. Receivables Due to Securities Short Selling Commitments - - - 5.1. Securities - - - 2.1.12. Payables Due to Securities Short Selling Commitments - - - 5.2. Performance Bonds 945.004 4.771 949.775 2.1.13. Other Irrevocable Commitments - - - 5.3. Commodities - - - 2.2. Revocable Commitments - 2.756.071 2.756.071 5.4. Warrants - - - 2.2.1. Revocable Credit Extension Commitments - - - 5.5. Real Properties - - - 2.2.2. Other Revocable Commitments - 2.756.071 2.756.071 5.6. Real Estate - - - III. DERIVATIVES V-III-b - - - 5.7. Other Assets under Lien - - - 3.1 Derivatives for Hedging Purposes - - - VI. ACCEPTED AVAILS AND GUARANTEES - - - 3.1.1 For Hedging Against Fair Value Risk - - - TOTAL OFF-BALANCE SHEET LIABILITIES (A+B) 13.856.119 6.851.639 20.707.758 3.1.2 For Hedging Against Cash Flow Risk - - -

3.1.3 For Hedging Against Net Investment Risk Abroad - - - Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. 3.2 Trading Transactions - - -

3.2.1 Future Foreign Currency Trading - - - The attached notes are complementary parts of these non-consolidated financial statements. 92 93

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. As Of December 31, 2017 Unconsolidated Balance Sheet Accounts Statement As Of December 31, 2017 Unconsolidated Balance Sheet Accounts Statement (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited Previous Period 31.12.2017 Previous Period 31.12.2017

Footnote TRY FX Total Footnote TRY FX Total

A. OFF-BALANCE SHEET LIABILITIES (I+II+III) 10.369.582 4.388.412 14.757.994 3.2.1.1 Future Foreign Currency Buying - - -

I. GUARANTEES and WARRANTIES V-III-a 476.909 2.388 479.297 3.2.2.2 Future Foreign Currency Selling - - - 1.1 Letters of Guarantee 476.909 2.388 479.297 3.2.2 Cash and Interest Swaps - - - 1.1.1 Covered under State Tenders Law 4 - 4 3.2.2.1 Swap Money Purchase Transactions - - - 1.1.2 Extended for Foreign Trade Transactions - - - 3.2.2.2 Swap Money Sale Transactions - - - 1.1.3 Other Letters of Guarantee 476.905 2.388 479.293 3.2.2.3 Swap Interest Purchase Transactions - - - 1.2 Bank Loans - - - 3.2.2.4 Swap Interest Sale Transactions - - - 1.2.1 Import Acceptance Loans - - - 3.2.3 Cash, Interest and Security Value Options - - - 1.2.2 Other Banks' Acceptances - - - 3.2.3.1 Money Purchase Options - - - 1.3 Letters of Credit - - - 3.2.3.2 Money Sale Options - - - 1.3.1 Letters of Credit on Document - - - 3.2.3.3 Interest Purchase Options - - - 1.3.2 Other Letters of Credit - - - 3.2.3.4 Interest Sale Options - - - 1.4 Guaranteed Pre-finances - - - 3.2.3.5 Securities Purchase Options - - - 1.5 Endorsements - - - 3.2.3.6 Securities Sale Options - - - 1.5.1 Endorsements to the Central Bank of Turkey - - - 3.2.4 Futures Money Transactions - - - 1.5.2 Other Endorsements - - - 3.2.4.1 Futures Money Purchase Transactions - - - 1.6 Underwriting Commitments of the Securities Issued - - - 3.2.4.2 Futures Money Sale Transactions - - - 1.7 Factoring Related Guarantees - - - 3.2.5 Futures Interest Trading - - - 1.8 Other Guarantees - - - 3.2.5.1 Futures Interest Purchase Transactions - - - 1.9 Other Warranties - - - 3.2.5.2 Futures Interest Sale Transactions - - - II. COMMITMENTS 9.892.673 4.386.024 14.278.697 3.2.6 Other - - - 2.1 Irrevocable Commitments 9.892.673 2.279.431 12.172.104 B. ASSETS IN CUSTODY OR UNDER LIEN (IV+V+VI) 5.292.875 628.389 5.921.264 2.1.1 Future Asset Value Trading Commitments - - - IV. ASSETS IN CUSTODY 4.429.227 624.933 5.054.160 2.1.2 Future Deposit Value Trading Commitments - - - 4.1 Client Funds and Portfolio Contents - - - 2.1.3 Commitments Regarding Subsidiaries, Affiliated Corporations and Jointly-Controlled Entities - - - 4.2 Securities in Custody - - - 2.1.4 Utilized Guaranteed Loan Extension Commitments 9.892.673 2.279.431 12.172.104 4.3 Checks Received for Collection - - - 2.1.5 Security Issues Intermediation Commitments - - - 4.4 Commercial Bonds Received for Collection - - - 2.1.6 Required Reserve Payment Commitments - - - 4.5 Other Assets Received for Collection - - - 2.1.7 Check Payment Commitments - - - 4.6 Securities Intermediated for Issuance - - - 2.1.8 Tax and Fund Liabilities due to Export Commitments - - - 4.7 Other Assets in Custody 4.422.063 624.933 5.046.996 2.1.9 Credit Card Expenditure Limit Commitments - - - 4.8 Receipients of Assets in Custody 7.164 - 7.164 2.1.10 Promotion Implementation Commitments Regarding Credit Cards and Banking Services - - - V. ASSETS UNDER LIEN 863.648 3.456 867.104 2.1.11 Receivables Due to Securities Short Selling Commitments - - - 5.1 Securities - - - 2.1.12 Payables Due to Securities Short Selling Commitments - - - 5.2 Performance Bonds 863.648 3.456 867.104 2.1.13 Other Irrevocable Commitments - - - 5.3 Commodities - - - 2.2 Revocable Commitments - 2.106.593 2.106.593 5.4 Warrants - - - 2.2.1 Revocable Credit Extension Commitments - - - 2.2.2 Other Revocable Commitments - 2.106.593 2.106.593 5.5 Real Properties - - - 5.6 Real Estate - - - III. DERIVATIVES - - 5.7 Other Assets under Lien - - - 3.1 Derivatives for Hedging Purposes - - - VI. ACCEPTED AVAILS AND GUARANTEES - - - 3.1.1 For Hedging Against Fair Value Risk - - - TOTAL OFF-BALANCE SHEET LIABILITIES (A+B) 15.662.457 5.016.801 20.679.258 3.1.2 For Hedging Against Cash Flow Risk - - - 3.1.3 For Hedging Against Net Investment Risk Abroad - - - Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial 3.2 Trading Transactions - - - statements were given separately. 3.2.1 Future Foreign Currency Trading - - - The attached notes are complementary parts of these non-consolidated financial statements. 94 95

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. Non-Consolidated Income Statement For The Interim Accounting Period Ended On 31 December 2018 Non-Consolidated Income Statement For The Interim Accounting Period Ended On 31 December 2017 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited INCOME AND EXPENSE ITEMS Current Period 31.12.2018 Previous Period 31.12.2017

Footnote Total Footnote Total I. INTEREST REVENUES V-IV-a 2.326.957 I. INTEREST REVENUES V-IV-a 1.482.495 1.1 Interests from Loans 2.161.715 1.1 Interests from Loans 1.303.197 1.2 Interests for Mandatory Reserves - 1.2 Interests for Mandatory Reserves - 1.3 Interests from Banks 157.067 1.3 Interests from Banks 171.315 1.4 Interests for Money Market Transactions - 1.4 Interests for Money Market Transactions - 1.5 Interests from Securities - 1.5 Interests from Securities - 1.5.1 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value - 1.5.1 From Financial Assets Held for Trading - 1.5.2 Fair Value Differences Reflected on Other Comprehensive Income - 1.5.2 Categorized as Assets, for Which Value Change is Reflected on Profit/Loss at Fair Value - 1.5.3 Measured by Redeemed Cost - 1.5.3 From available-for-sales financial assets - 1.6 Leasing Revenues - 1.5.4 From Investments Held to Maturity - 1.7 Other Interest Revenues 8.175 II. INTEREST EXPENSES (-) V-IV-b 328.586 1.6 Leasing Revenues - 2.1 Interests Paid on Deposits - 1.7 Other Interest Revenues 7.983 2.2 Interests Paid on Loans Utilized 87.303 II. INTEREST EXPENSES V-IV-b 30.286 2.3 Interest on Money Market Transactions 88.297 2.1 Interests Paid on Deposits - 2.4 Interest on securities issued - 2.2 Interests Paid on Loans Utilized 162 2.5 Other Interest Expenses 152.986 2.3 Interest on Money Market Transactions 29.372 III. NET INTEREST REVENUE/ EXPENSES [I-II] 1.998.371 2.4 Interest on securities issued - IV. NET FEE AND COMMISSION INCOME 16.235 2.5 Other Interest Expenses 752 4.1 Fees and Commissions Received 19.014 III. NET INTEREST REVENUE/ EXPENSES [I-II] 1.452.209 4.1.1 From Non-Cash Loans 14.257 IV. NET FEE AND COMMISSION INCOME 13.695 4.1.2 Other 4.757 4.1 Fees and Commissions Received 14.579 4.2 Fees and Commissions Paid(-) (2.779) 4.1.1 From Non-Cash Loans 9.557 4.2.1 For Non-Cash Loans - 4.1.2 Other 5.022 4.2.2 Other (2.779) 4.2 Fees and Commissions Paid (884) V. PERSONNEL EXPENSES (-) (325.008) 4.2.1 For Non-Cash Loans - VI DIVIDEND INCOME V-IV-c 10 4.2.2 Other (884) VII. NET COMMERCIAL PROFIT/(LOSS) (Net) V-IV-ç (935) V. DIVIDEND INCOME - 7.1 Securities Trading Profit/Loss - VI. NET COMMERCIAL PROFIT/(LOSS) (Net) V-IV-c (1.051) 7.2 Profit/Loss on Derivative Financial Instruments - 6.1 Securities Trading Profit/Loss - 7.3 Profit/Loss on Foreign Exchange Transactions (935) 6.2 Profit/Loss on Derivative Financial Instruments - VIII. OTHER OPERATING INCOME V-IV-d 750.383 6.3 Profit/Loss on Foreign Exchange Transactions (1.051) IX. TOTAL OPERATING REVENUES/EXPENSES (III+IV+V+VI+VII) 2.439.056 X. PROVISIONS FOR LOANS (-) V-IV-e - VII. OTHER OPERATING INCOME V-IV-ç 383.321 XI. OTHER OPERATING INCOME (-) V-IV-f (332.936) VIII. TOTAL OPERATING REVENUES/EXPENSES (III+IV+V+VI+VII) 1.848.174 XII. NET OPERATING PROFIT/LOSS (IX-X-XI) 2.106120 IX. IMPAIRMENT RESERVES FOR LOANS AND OTHER RECEIVABLES (-) V-IV-d 94.165 XIII. AMOUNT OF SURPLUS RECOGNIZED AS REVENUE FOLLOWING MERGER - X. OTHER OPERATING EXPENSES (-) V-IV-e 521.122 XIV. PROFIT/LOSS FROM CORPORATIONS SUBJECT TO EQUITY METHOD - XI. NET OPERATING PROFIT/(LOSS) (VIII-IX-X) 1.232.887 XV. NET CASH POSITION PROFIT/LOSS - XII. AMOUNT OF SURPLUS RECOGNIZED AS REVENUE FOLLOWING MERGER - XVI. BEFORE TAX ON ONGOING OPERATIONS K/Z (XII+...+XV) V-IV-g 2.106120 XIII. PROFIT/LOSS FROM CORPORATIONS SUBJECT TO EQUITY METHOD - XVII. TAX RESERVES FOR ONGOING OPERATIONS (±) V-IV-ğ 443.766 XIV. NET CASH POSITION PROFIT/LOSS - 17.1 Current Tax Reserves 382.052 XV. P/L BEFORE TAX ON ONGOING OPERATIONS (XI+...+XIV) 1.232.887 17.2 Deferred Tax Expense Effect (+) 70.819 XVI. TAX RESERVES FOR ONGOING OPERATIONS V-IV-f (247.079) 17.3 Deferred Tax Income Impact (-) (9.105) 16.1 Current Tax Reserves (266.172) XVIII. CURRENT FROM ONGOING OPERATIONS K/Z (XVI±XVII) V-IV-h 1.662.354 16.2 Deferred Tax Reserves 19.093 XIX. EXPENSES FOR DISCONTINUED OPERATIONS - XVII. CURRENT P/L FROM ONGOING OPERATIONS (XV±XVI) 985.808 19.1 Revenues from Fixed Assets Held for Sale - XVIII. REVENUES FROM DISCONTINUED OPERATIONS - 19.2 Sales Profits on Associates, Subsidiaries and Jointly-Controlled Entities (Joint Ventures) - 18.1 Revenues from Fixed Assets Held for Sale - 19.3 Other Discontinued Operations In comes - 18.2 Sales Profits on Associates, Subsidiaries and Jointly-Controlled Entities (Joint Ventures) - XX. REVENUES FROM DISCONTINUED OPERATIONS (-) - 18.3 Other Discontinued Operations In comes - 20.1 Revenues from Fixed Assets Held for Sale - XIX. EXPENSES FOR DISCONTINUED OPERATIONS (-) - 20.2 Sales Profits on Associates, Subsidiaries and Jointly-Controlled Entities (Joint Ventures) - 19.1 Expenses on Fixed Assets Held for Sale - 20.3 Other Discontinued Operations In comes - 19.2 Sales Loss on Associates, Subsidiaries and Jointly-Controlled Entities (Joint Ventures) - XXI. BEFORE TAX ON DISCONTINUED OPERATIONS K/Z (XIX-XX) - 19.3 Other Discontinued Operations Expenses - XXII. TAX RESERVES FOR DISCONTINUED OPERATIONS (±) - 22.1 Current Tax Reserves - XX. P/L BEFORE TAX ON DISCONTINUED OPERATIONS (XVIII-XIX) - 22.2 Deferred Tax Expense Effect (+) - XXI. TAX RESERVES FOR DISCONTINUED OPERATIONS (±) V-IV-f - 22.3 Deferred Tax Income Impact (-) - 21.1 Current Tax Reserves - XXIII. NET CURRENT FROM DISCONTINUED OPERATIONS K/Z (XXI±XXII) - 21.2 Deferred Tax Reserves - XXIV. NET CURRENT PROFIT AND LOSS (XVIII+XXIII) V-IV-h 1.662.354 XXII. NET CURRENT P/L FROM DISCONTINUED OPERATIONS (XX±XXI) - 24.1 Profit/Loss of the Group - XXIII. NET CURRENT PROFIT AND LOSS (XVII+XXII) V-IV-g 985.808 24.2 Profit/Loss of Minority Shares (-) - 23.1 Profit/Loss of the Group 985.808 Profit And Loss Per Share 23.2 Profit/Loss of Minority Shares -

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. statements were given separately. The attached notes are complementary parts of these non-consolidated financial statements. The attached notes are complementary parts of these non-consolidated financial statements. 96 97

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

ILLER BANK, INC. ILLER BANK, INC. Interim Accounting Period Ended On 31 December 2018 Non-Consolidated Income Statement Accounts Booked In Shareholder’s Equity Interim Accounting Period Ended On 31 December 2017 Non-Consolidated Income Statement Accounts Booked In Shareholder’s Equity (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited BIndependently Audited Current Period 31.12.2018 Previous Period 31.12.2017

I. CURRENT PROFIT/LOSS 1.662.354 INCOME STATEMENT ACCOUNTS RECOGNICED IN SHAREHOLDERS› EQUITY Footnote Total

II. OTHER COMPREHENSIVE INCOME - I. ADDED TO SECURITIES VALUATION SURPLUS FROM AVAILABLE-FOR-SALE FINANCIALASSETS -

2.1 Not Reclassified in Profit or Loss - II. TANGIBLE FIXED ASSETS REVALUATION SURPLUS 162.977

2.1.1 TANGIBLE FIXED ASSETS REVALUATION SURPLUS - III. INTANGIBLE FIXED ASSETS REVALUATION SURPLUS -

2.1.2 INTANGIBLE FIXED ASSETS REVALUATION SURPLUS - IV. EXCHANGE RATE DIFFERENCES FOR FOREIGN CURRENCY TRANSACTIONS -

2.1.3 Defined Benefit Plans Recalculation Gains / Losses - V. PROFITS/LOSSES ON DERIVATIVE INSTRUMENTS FOR HEDGING AGAINST CASH FLOWRISKS (Active Part of Fair Value Changes) - 2.1.4 Other Comprehensive Income Elements That Will Not Be Reclassified to Other Profit or Loss - VI. PROFITS/LOSSES ON DERIVATIVE INSTRUMENTS FOR HEDGING AGAINST NET INVESTMENT RISKS ABROAD (Active Part of 2.1.5 Taxes Related to Other Comprehensive Income Not to be Reclassified in Profit or Loss - Fair Value Changes) -

2.2 Reclassifications to Profit or Loss - VII. IMPACT OF ACCOUNTING POLICY CHANGES AND CORRECTION OF ERRORS -

2.2.1 EXCHANGE RATE DIFFERENCES FOR FOREIGN CURRENCY TRANSACTIONS - VIII. IMPACT OF ACCOUNTING POLICY CHANGES AND CORRECTION OF ERRORS -

2.2.2 Valuation and/or classification income/expenses of financial assets at fair value through profit or loss - IX. DEFERRED TAX FOR VALUATION SURPLUS -

2.2.3 Cash Flow Hedges and Expenses - X. NET INCOME/EXPENSE RECOGNIZED DIRECTLY AS SHAREHOLDERS’ EQUITY (I+II+...IX) 162.977

2.2.4 Re-Classified Part of Derivative Instruments for Hedging Against Cash Flow Risk, included inthe Income Statement - XI. CURRENT PROFIT/LOSS 985.808

2.2.5 Other Comprehensive Income Components to be Reclassified as Other Profit or Loss - 11.1 Net change in the fair value of securities (transfers to profits-losses) -

2.2.6 Taxes Related to Other Comprehensive Income to be Reclassified in Profit or Loss - 11.2 Re-Classified Part of Derivative Instruments for Hedging Against Cash Flow Risk, included inthe Income Statement -

III. TOTAL COMPREHENSIVE INCOME (I+II) 1.662.354 11.3 Re-Classified Part of Derivative Instruments for Hedging Against Cash Flow Risk, included inthe Income Statement -

11.4 Other 985.808 Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. XII. TOTAL RECOGNIZED PROFIT/LOSS FOR THE PERIOD (X±XI) The attached notes are complementary parts of these non-consolidated financial statements. Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. The attached notes are complementary parts of these non-consolidated financial statements. 98 99

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

İLLER BANKASI A.Ş Non-Consolidated Shareholders’ Equity Change Statement For Iller Bank’s Interim Accounting Period That Ended On 31 December 2018 (Tutarlar aksi belirtilmedikçe Bin Türk Lirası (TL) olarak ifade edilmiştir)

Independently Audited Current Period (31.12.2018)

Will Not Be Reclassified to Profit or Loss To be Reclassified in Profit or Loss Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income and Expenses and Expenses CHANGES IN SHAREHOLDERS EQUITY ACCOUNTS Total Sharehol- Share Premium Previous Total Sha- Profit Net Current ders Equity Minority Paid-In Capital Share Premiums of Canceled Other Capital Reserves 1 2 3 4 5 6 Period’s Profit reholders’ Reserves Profit / (Loss) Excl. Minority Shares Stocks /(Loss) Equity Shares

I. Previous Period Ending Balance 13.122.184 - - 1.048.223 771.081 1.071.306 - 16.012.794 - 16.012.794

II. Adjustments Made in Accordance with TMS 8 ------

2.1 Impact of Error Correction ------

2.2 Impact of Accounting Policy Changes ------

III. Updated Balance (I+II) 13.122.184 - - 1.048.223 771.081 1.071.306 - 16.012.794 - 16.012.794

IV. Total Comprehensive Income ------1.662.354 1.662.354 - 1.662.354

V. Performed A Capital Increase In Cash 1.435.614 ------1.435.614 - 1.435.614

VI. Capital Increase from Internal Resources ------

VII. Paid-in Capital Inflation Adjustments ------

VIII. Convertible Bonds ------

IX. Equity-like Debt Instruments ------

X. Increase / Decrease due to Other Changes - - - 921 - - - 921 - 921

XI. Dividend Payment 289.738 - - - 145.619 (966.715) - (531.358) - (531.358)

11.1 Dividend Paid - - - - - (531.358) - (531.358) - (531.358)

11.2 Amounts Transferred to Reserves - - - - 145.619 (145.619) - - - -

11.3 Other 289.738 - - - - (289.738) - - - -

Balance at the end of the period (III+IV+…...+X+XI) 14.847.536 - - 1.049.144 916.700 104.591 1.662.354 18.580.325 - 18.580.325

1. Fixed revaluation increases and decreases in fixed assets 4. Foreign currency translation differences

2. Accumulated re-measurement gains and losses of defined benefit plans 5. Accumulated revaluation and / or classification gains / losses on financial assets at fair value through profit or loss,

3. Other (the amounts of other comprehensive income items that cannot be classified as profit or loss from other comprehensive income of the investments 6. Other (Cash flow hedge gains / losses) represents the accumulated interest in other comprehensive income of the investments accounted for by the equity accounted for by the equity method and the other income items that cannot be reclassi-fied as other profit or loss) method, and the cumulative amounts of other comprehensive income that will be reclassified to other profit or loss)

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately.

The attached notes are complementary parts of these non-consolidated financial statements 100 101

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

İLLER BANKASI A.Ş Non-Consolidated Shareholders’ Equity Change Statement For Iller Bank’s Interim Accounting Period That Ended On 31 December 2017 (Tutarlar aksi belirtilmedikçe Bin Türk Lirası (TL) olarak ifade edilmiştir)

Previous Period – 31.12.2017

Share Tangible and Fixed Assets Total Paid-in Statutory Previous Premium Net Current Securities Intangible Bonus Val. Surp. For Shareholders› Total Paid-In Capital Share Contin- Statutory Extraordinary Other Period’s Hedge Minority CHANGES IN SHAREHOLDERS EQUITY ACCOUNTS Footnote of Profit / Valuation Fixed Assets Shares from Assets Held Equity Excl. Shareholders› Capital Inflation Premiums gency reserves Reserve Reserves Profit/ Funds Shares Canceled (Loss) Surplus Revaluation Shareholdings for Sale/Disc. Minority Equity Adjustments Reserves (Loss) Stocks Difference Op. Shares

I. Balance as of the Beginning of the Period 11.690.749 876.514 - - 463.295 192.664 - - - 884.920 - 8.732 - - - 14.116.874 - 14.116.874

II. Adjustments Made in Accordance with TMS 8 ------

2.1 Impact of Error Correction ------

2.2 Impact of Accounting Policy Changes ------

III. Updated Balance (I+II) 11.690.749 876.514 - - 463.295 192.664 - - - 884.920 - 8.732 - - - 14.116.874 - 14.116.874

Changes within the Period ------

IV. Increase/Decrease Due to Merger ------

V. Securities Valuation Surplus ------

VI. Hedge Funds (Active part) ------

6.1 For Hedging Against Cash Flow Risk ------

6.2 For Hedging Against Net Investment Risk Abroad ------

VII. Tangible Fixed Assets Valuation Surplus ------(162.977) - 162.977 ------

VIII. Intangible Fixed Assets Valuation Surplus ------Bonus Shares in Subsidiaries, Affiliated Corporations and Jointly-Controlled IX. ------Entities (Joint Ventures) X. Exchange Rate Differences ------

XI. Changes Due to Disposal of Assets ------

XII. Changes Due to Reclassification of Assets ------Impact of Subsidiary Shareholders' Equity on the Shareholders' Equity of the XIII. ------Bank XIV. Capital Increase 1.207.588 ------1.207.588 - 1.207.588

14.1 Cash 1.207.588 ------1.207.588 - 1.207.588

14.2 Internal Sources ------

XV. Share Issue ------

XVI. Share Premium of Canceled Stocks ------

XVII. Paid-in Capital Inflation Adjustments ------

XVIII. Other ------

XIX. Current Profit or Loss ------985.808 ------985.808 - 985.805

XX. Dividend Payment 223.847 - - - 37.308 77.814 - - - (636.445) - - - - - (297.476) - (297.476)

20.1 Dividend Paid ------(297.476) - - - - - (297.476) - (297.476)

20.2 Amounts Transferred to Reserves - - - - 37.308 77.814 - - - (115.122) ------

20.3 Other 223.847 ------(223.847) ------

Balance at the end of the period (I+II+III+…+XV+XVII+XVIII) 13.122.184 876.514 - - 500.603 270.478 - - 985.808 85.048 - 171.709 - - - 16.012.794 - 16.012.794

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately.

The attached notes are complementary parts of these non-consolidated financial statements 102 103

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. Non-Consolidated Cash Flow Statement For The Year Ended 31 December 2018 Non-Consolidated Cash Flow Statement For The Year Ended 31 December 2017 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited Footnote Footnote Current Period 31.12.2018 Previous Period 31.12.2017

A. CASH FLOWS REGARDING BANKING OPERATIONS A. CASH FLOWS REGARDING BANKING OPERATIONS 1.1 Operating Profits Before Change in Assets and Liabilities Concerning Banking Operations 1.502.093 1.1 Operating Profits Before Change in Assets and Liabilities Concerning Banking Operations 1.086.408 1.1.1 Interests received 2.294.809 1.1.1 Interests received 1.469.042 1.1.2 Interests paid (320.309) 1.1.2 Interests paid (29.868) 1.1.3 Dividends received 10 1.1.3 Dividends received - 1.1.4 Fees and Commissions Received 19.014 1.1.4 Fees and Commissions Received 14.579 1.1.5 Other Income Generated 141.554 1.1.5 Other Income Generated 142.948 1.1.6 Collections from Illiquid Claims Recognized as Loss - 1.1.6 Collections from Illiquid Claims Recognized as Loss - 1.1.7 Cash Payments to Personnel and Service Providers (324.386) 1.1.7 Cash Payments to Personnel and Service Providers (287.930) 1.1.8 Taxes Paid (20.564) 1.1.8 Taxes Paid (15.007) 1.1.9 Other V-VI-I (288.035) 1.1.9 Other (207.356) 1.2 Change in Assets and Liabilities Concerning Banking Operations (2.053.081) 1.2 Change in Assets and Liabilities Concerning Banking Operations (5.205.190) 1.2.1 Net (Increase) Decrease in Financial Assets Categorized with Reflection of Fair Value Change in P/L - 1.2.1 Net (Increase) Decrease in Financial Assets Categorized with Reflection of Fair Value Change in P/L - 1.2.2 Net (Increase) Decrease in Banks Account - 1.2.2 Net (Increase) Decrease in Banks Account - 1.2.3 Net (Increase) Decrease in Loans (5.863.636) 1.2.3 Net (Increase) Decrease in Loans 12 1.2.4 Net (Increase) Decrease in Other Assets V-VI-I (45.919) 1.2.4 Net (Increase) Decrease in Other Assets (5.909.275) 1.2.5 Net (Increase) Decrease in Banks’ Deposits - 1.2.5 Net (Increase) Decrease in Banks’ Deposits (205.115) 1.2.6 Net (Increase) Decrease in Other Deposits - 1.2.6 Net (Increase) Decrease in Other Deposits - 1.2.7 Net (Increase) Decrease in Financial Assets Categorized with Reflection of Fair Value Change in P/L - 1.2.7 Net (Increase) Decrease in Financial Assets Categorized with Reflection of Fair Value Change in P/L - 1.2.8 Net (Increase) Decrease in Loans Received 2.062.432 1.2.8 Net (Increase) Decrease in Loans Received 464.936 1.2.9 Net (Increase) Decrease in Mature Debts - 1.2.9 Net (Increase) Decrease in Mature Debts - 1.2.10 Net (Increase) Decrease in Other Debts V-VI-I 1.794.042 1.2.10 Net (Increase) Decrease in Other Debts 444.252 I. Net Cash Flows from Banking Operations (550.988) I. Net Cash Flows from Banking Operations (4.118.782) B. CASH FLOWS REGARDING INVESTMENT OPERATIONS B. CASH FLOWS REGARDING INVESTMENT OPERATIONS II. Net Cash Flows from Investment Operations 226.765 II. Net Cash Flows from Investment Operations 100.756 Acquired Affiliated Corporations and Subsidiaries and Corporations under Common Control (Business Acquired Affiliated Corporations and Subsidiaries and Corporations under Common Control (Business 2.1 Partnerships) - 2.1 Partnerships) - Disposed Affiliated Corporations and Subsidiaries and Corporations under Common Control (Business Disposed Affiliated Corporations and Subsidiaries and Corporations under Common Control (Business 2.2 Partnerships) - 2.2 Partnerships) - 2.3 Acquired Securities and Real Estate (29.524) 2.3 Acquired Securities and Real Estate (139.505) 2.4 Disposed Securities and Real Estate 256.289 2.4 Disposed Securities and Real Estate 240.261 2.5 Financial Assets at Fair Value through Other Comprehensive Income - 2.5 Financial Assets at Fair Value through Other Comprehensive Income - 2.6 Fair Value Differences Reflected To Other Comprehensive Income - 2.6 Fair Value Differences Reflected To Other Comprehensive Income - 2.7 Financial assets measured at amortized cost - 2.7 Financial assets measured at amortized cost - 2.8 Financial Assets measured at amortized cost - 2.8 Financial Assets measured at amortized cost - 2.9 Other V-VI-I - 2.9 Other - C. CASH FLOWS REGARDING FINANCIAL OPERATIONS C. CASH FLOWS REGARDING FINANCIAL OPERATIONS III. Net Cash Flows from Financial Operations 1.365.383 III. Net Cash Flows from Financial Operations 1.050.024 3.1 Cash generated from loans and issued securities - 3.1 Cash generated from loans and issued securities - 3.2 Cash outflow due to loans and issued securities - 3.2 Cash outflow due to loans and issued securities - 3.3 Issued Capital Market Instruments - 3.3 Issued Capital Market Instruments - 3.4 Dividend Payments (70.231) 3.4 Dividend Payments (157.564) 3.5 Payments Regarding Leasing - 3.5 Payments Regarding Leasing - 3.6 Other V-VI-I 1.435.614 3.6 Other 1.207.588 IV. The Effect of Foreign Currency Translation Differences on Cash and Cash Equivalents V-VI-I 15.541 IV. The Effect of Foreign Currency Translation Differences on Cash and Cash Equivalents 3.087 V. Net (decrease) /increase in cash and cash equivalents 1.056.701 V. Net (decrease) /increase in cash and cash equivalents (2.964.915) VI. Cash and cash equivalents at the beginning of the period 1.776.855 VI. Cash and cash equivalents at the beginning of the period (4.741.770) VII. Cash and cash equivalents at the end of the period 2.833.556 VII. Cash and cash equivalents at the end of the period 1.776.855

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. prepared on a different basis, 2017 financial statements were given separately.

The attached notes are complementary parts of these non-consolidated financial statements The attached notes are complementary parts of these non-consolidated financial statements 104 105

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2017 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Independently Audited Independently Audited Current Period 31.12.2018 Previous Period 31.12.2017

I. DIVIDEND PAYMENT FOR THE PERIOD I. DIVIDEND PAYMENT FOR THE PERIOD 1.1 PROFITS FOR THE PERIODS 2.046.539 1.1 PROFITS FOR THE PERIODS 1.231.966 1.2 PAYABLE TAXES AND LEGAL LIABILITIES (-) 382.052 1.2 PAYABLE TAXES AND LEGAL LIABILITIES (-) 266.172 1.2.1 Income Tax Withholding 382.052 1.2.1 Income Tax Withholding 266.172 1.2.2 Other Taxes and Legal Liabilities Payable - 1.2.2 Other Taxes and Legal Liabilities Payable - 1.2.3 Other Taxes and Legal Obligations - 1.2.3 Other Taxes and Legal Obligations - A NET CURRENT PROFIT (1.1 - 1.2) 1.664.487 A NET CURRENT PROFIT (1.1 - 1.2) 965.794 1.3 LOSSES FROM PAST PERIODS - 1.3 LOSSES FROM PAST PERIODS - 1.4 PRIMARY STATUTORY RESERVE (-) 83.224 1.4 PRIMARY STATUTORY RESERVE (-) 48.290 1.5 STATUTORY FUNDS REQUIRED TO BE SAVED AND KEPT AT THE ENTITY (-)(*) 499.346 1.5 STATUTORY FUNDS REQUIRED TO BE SAVED AND KEPT AT THE ENTITY (-)(*) 289.738 B NET PROFITS FOR THE PERIOD AVAILABLE FOR DIVIDEND PAYMENTS [(A-(1.3+1.4+1.5))] 1.081.917 B NET PROFITS FOR THE PERIOD AVAILABLE FOR DIVIDEND PAYMENTS [(A-(1.3+1.4+1.5))] 627.766 1.6 PRIMARY DIVIDEND PAYMENT TO SHAREHOLDERS (-) 848.889 1.6 PRIMARY DIVIDEND PAYMENT TO SHAREHOLDERS (-) 492.555 1.6.1 To Shareholders - 1.6.1 To Shareholders - 1.6.2 To Preferred Share Holders(**) 848.889 1.6.2 To Preferred Share Holders(**) 492.555 1.6.3 Dividend Participation Certificates - 1.6.3 Dividend Participation Certificates - 1.6.4 To Profit Sharing Bonds - 1.6.4 To Profit Sharing Bonds - 1.6.5 To Profit and Loss Sharing Certificate Holders - 1.6.5 To Profit and Loss Sharing Certificate Holders - 1.7 DIVIDEND PAYMENTS TO PERSONNEL (-) 149.804 1.7 DIVIDEND PAYMENTS TO PERSONNEL (-) 86.921 1.8 DIVIDEND PAYMENT TO THE BOARD OF DIRECTORS (-) - 1.8 DIVIDEND PAYMENT TO THE BOARD OF DIRECTORS (-) - 1.9 SECONDARY DIVIDEND PAYMENT TO SHAREHOLDERS (-) - 1.9 SECONDARY DIVIDEND PAYMENT TO SHAREHOLDERS (-) - 1.9.1 To Shareholders - 1.9.1 To Shareholders - 1.9.2 To Preferred Share Holders - 1.9.2 To Preferred Share Holders - 1.9.3 Dividend Participation Certificates - 1.9.3 Dividend Participation Certificates - 1.9.4 To Profit Sharing Bonds - 1.9.4 To Profit Sharing Bonds - 1.9.5 To Profit and Loss Sharing Certificate Holders - 1.9.5 To Profit and Loss Sharing Certificate Holders - 1.10 SECONDARY STATUTORY RESERVE (-) 83.224 1.10 SECONDARY STATUTORY RESERVE (-) - 1.11 STATUTORY RESERVES (-) - 1.11 STATUTORY RESERVES (-) 48.290 1.12 EXTRAORDINARY RESERVES - 1.12 EXTRAORDINARY RESERVES - 1.13 OTHER RESERVES - 1.13 OTHER RESERVES - II. SPECIAL FUNDS 1.14 SPECIAL FUNDS - 2.1 PAYMENT FROM RESERVES - II. PAYMENT FROM RESERVES 2.2 DISTRIBUTED RESERVES - 2.1 DISTRIBUTED RESERVES - 2.2.1 SECONDARY STATUTORY RESERVES (-) - 2.2 SECONDARY STATUTORY RESERVES (-) - 2.2.2 SHARES TO SHAREHOLDERS (-) - 2.3 SHARES TO SHAREHOLDERS (-) - 2.2.3 To Shareholders - 2.3.1 To Shareholders - 2.2.4 To Preferred Share Holders - 2.3.2 To Preferred Share Holders - 2.2.5 Dividend Participation Certificates - 2.3.3 Dividend Participation Certificates - 2.3 To Profit Sharing Bonds - 2.3.4 To Profit Sharing Bonds - 2.4 To Profit and Loss Sharing Certificate Holders - 2.3.5 To Profit and Loss Sharing Certificate Holders - III. SHARES TO PERSONNEL (-) - 2.4 SHARES TO PERSONNEL (-) - 3.1 SHARES TO THE BOARD OF DIRECTORS (-) - 2.5 SHARES TO THE BOARD OF DIRECTORS (-) - 3.2 EARNINGS PER SHARE - III. EARNINGS PER SHARE - 3.3 TO SHAREHOLDERS - 3.1 TO SHAREHOLDERS - 3.4 TO SHAREHOLDERS (%) - 3.2 TO SHAREHOLDERS (%) - IV. TO PREFERRED SHAREHOLDERS - 3.3 TO PREFERRED SHAREHOLDERS - 4.1 TO PREFERRED SHAREHOLDERS (%) - 3.4 TO PREFERRED SHAREHOLDERS (%) - 4.2 DIVIDEND PER SHARE - IV. DIVIDEND PER SHARE - 4.3 TO SHAREHOLDERS - 4.1 TO SHAREHOLDERS - 4.4 TO SHAREHOLDERS (%) - 4.2 TO SHAREHOLDERS (%) - 4.3 TO PREFERRED SHAREHOLDERS - 4.3 TO PREFERRED SHAREHOLDERS - 4.4 TO PREFERRED SHAREHOLDERS (%) - 4.4 TO PREFERRED SHAREHOLDERS (%) -

(*) The difference between the period profit in the income statement and the profit of distribution is TL 2.133 and the TL 61.713 deferred tax asset / liability net consists of TL 50.580 of net income (*) Income TRL 20.014 worth of difference between the table in Profit for Distribution is mainly profit TRL 19,093 profit distribution subject to Deferred from tax revenues, while TRL 921 Corporate Tax Law 5/1-E in from real estate sales in accordance with article 5/1-e of the Corporate Tax Law. accordance with Article sale of real estate exemption It consists of income. (**) “Iller Bank Law on Joint Stock Companies” that are transferred to the Bank pursuant to Article 4. The Bank’s net income is 30% of the share capital Capital. (**) “Iller Bank Law on Joint Stock Companies” that are transferred to the Bank pursuant to Article 4. The Bank’s net income is 30% of the share capital Capital. (***) 6107 No. “Provincial Law on the Bank of Joint Stock Company”s 13th and the Bank according to the 30th article of the Articles of Association annual gross profit of 51% of the provinces brought (***) 6107 No. “Provincial Law on the Bank of Joint Stock Company”s 13th and the Bank according to the 30th article of the Articles of Association annual gross profit of 51% of the provinces brought the village the village rather than by the Special Administrative technical and social infrastructure services financing; maps of municipalities with less than 200,000 population, development plans, drinking rather than by the Special Administrative technical and social infrastructure services financing; maps of municipalities with less than 200,000 population, development plans, drinking water, wastewater, solid water, wastewater, solid waste, urban information system, and so the population with the financing of urban infrastructure projects referred to municipalities with less than 25,000 project is also waste, urban information system, and so the population with the financing of urban infrastructure projects referred to municipalities with less than 25,000 project is also owned part will be used to finance a owned part will be used to finance a grant of production. grant of production.

Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are Note: IFRS 9 in accordance with the provisions related to the transition prior period financial statements and notes have not been restated. 2017 and 2018 because of the financial statements are prepared on a different basis, 2017 financial statements were given separately. prepared on a different basis, 2017 financial statements were given separately.

The attached notes are complementary parts of these non-consolidated financial statements The attached notes are complementary parts of these non-consolidated financial statements 106 107

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

SECTION THREE Central Bank of Turkey was declared valid indicators in the nature of exchange rates at the balance sheet date:

Date US Dollar Euro 100 Japanese Yens Accounting Policies 28 December 2018 5,2609 6,0280 4,7547 Date US Dollar Euro 100 Japanese Yens I. Presentation principles 28 December 2017 3,8104 4,5478 3,3694

The Bank prepared its accounting records, non-consolidated financial statements, explanations and footnotes concerning thereof, in line with Turkish Accounting Standards (“TMS”) and Turkish Financial Reporting Standards (“TFRS”) as well as Regulation on the Methods and III. Remarks on forward and option contracts, derivatives Principles Regarding the Banks’ Accounting Practices and the Keeping of Documents and other regulations, communiqués, and circulars published by Banking Regulation and Supervision Agency (“BRSA”) on accounting and financial reportingprinciples, as well as statements The Bank had no forward and option contracts and derivatives as at the end of the reporting period. of the Banking Regulation and Supervision Agency. IV. Explanations on interest income and expenses By the Decree with the Force of Law nr. 660, which entered into force upon its publication in the Official Gazette dated 2 November2011, Interest income and expenses are recognized according to the effective interest method.Only loans granted by local governments in accor- Supplementary Article 1 of the Law nr. 2499 was repealed and the Public Oversight, Accounting and Audit Standards Boardwas establis- dance with the Banking Code. The interest credited to the credits is accrued on a monthly basis. hed. The financial statements were drawn up on the basis of Turkish Accounting Standards / Turkish Financial Reporting Standards (“TMS/ TFRS”) implemented by the Public Oversight, Accounting and Audit Standards Authority (“KGK”), and the annexes and comments there of. In the case of foreign currency denominated loans, which are extended to local governments from funds securedfrom the World Bank under the “Municipal Services Project and Sustainable Cities Project” and from JICA under the Municipal Sewage and Waste Water Treat- The financial statements were drawn up on the basis of the historical cost principle, in addition to the use of fair value principleapplied for ment Plants Development Project, monthly interest rediscounts are effected, while interest is accrued at six-month intervals asrequired financial assets for trading. by contractual agreements. Interest income/expenses are accounted for on an accrual basis. Any interest and associated rediscounting The accounting policies and valuation principles applied in the preparation of the financial statements have been determined and applied that accrues onloans and other receivables that have become illiquid pursuant to applicable legislation is canceled and is not accounted for by BRSA in accordance with regulations, communiqués, annotations and circulars published in accordance with the accounting and finan- as“interest income” until and unless it is actually collected cial reporting principles. Article 2 of the Communiqué yayımlan Communiqué on the Amendment to the General Communiqué on Public Treasury eklen published The accompanying financial statements have been prepared in accordance with the Mev BRSA Accounting and Financial Reporting Legis- in the Official Gazette dated 28 February 2018 and numbered 30346 and paragraph 5 of the Communiqué No. 5 of Genel İller Bankası lation İliş. Accounting policies applied in annual financial statements prepared as of December 31, 2017 and the financial statements pre- A.Ş. the financial resources of the municipalities and special provincial administrations which have partnerships, as stipulated in Article 6 pared in the current period are consistent except for the classifications provided for in the application of TFRS 9. The inden TFRS 9 Financial of this Communiqué; The Bank provides funds from its shareholders. Interest expenses related to funds collected are also accounted for Instruments ”standard published in the Official Gazette dated January 19, 2017 and numbered 29953 by the Public Oversight Accounting using the effective interest method. and Auditing Standards Authority is in place of’ TAS 39 Financial Instruments: Recognition and Measurement artlar, effective from 1 Janu- ary 2018. TFRS 9 standard, mainly the classification and measurement of financial instruments, sets new principles for the expected loss V. Remarks on fee and commission income and expenses provision for financial assets. Iller Bank with No. 6107 As per the provisions of the Law, the Bank does not allocate credit and loss provi- The Bank makes the collections of commissions on the non-cash credit that it extends to local governments. In addition and in its capacity sions. In accordance with TFRS 9, the accompanying financial statements are not presented comparatively, but are presented separately. as an Type A agent of Groupama Insurance of Güneş Insurance and Ankara Insurance the Bank also collects commissions both on the insu- The values shown in the financial statements and in their associated explanations and footnotes are denominated in thousand Turkish rance of movable and immovable properties belonging to itself and to local governments. Guarantee fee is paid to the Undersecretariat of Liras unless otherwise indicated. Treasury for the credits provided from foreign financial institutions to be reflected to the local administrations. The commission expenses consist of the Bank’s shares of commitment fees which are paid to the Central Bank of Turkey on account of interbank money market II.Financial instruments utilization strategies and transactions denominated in foreign currencies transactions or which are paid to JICA on account of JICA credit that is used. Bank’s balance sheet liabilities in the loans included “Municipal Services Project” and “Sustainable Cities Project” from the World Bank, VI. Explanations on financial assets “Development Project of Municipal Sewage and Wastewater Treatment Plant” within the scope of Japan International Cooperation Agency (JICA) and “Urban Transport Project” by providing the Islamic Development Bank it consists of loans granted to municipalities, exchange The Bank’s financial assets are classified and booked under the headings of “Financial assets at fair value through profit/loss”,“Availab- differences on these loans is recognized using loans to local governments. Municipality Sewage and Wastewater Treatment Facilities Im- le-for-sale financial assets”, “Financial assets held to maturity”, and “Loans and receivables”. provement Project, the credit obtained from JICA “Consulting” under the name established by section used by the Bank differences belong Financial Assets at Fair Value through Profit or Loss: to the bank, end the assets and liabilities in one of the pens Central Bank of Turkey to TRL dry it is converted. Financial assets at fair value through profit or loss are financial assets that are part of a portfolio to make short-term profit regardless of Asset and liability monetary items denominated in foreign currencies are valued according to the Central Bank of Turkey exchange rates in whether they are derived or acquired from short-term fluctuations in prices or similar factors. effect on the balance sheet date. Currency conversion losses/gains arising from the valuation of monetary items are accounted for in the income statement as “Exchange rate losses/gains”. 108 109

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

VI. Explanations on financial assets (Continued) VII. Provision For Impairment Losses

Financial assets at fair value through profit or loss are reflected to the balance sheet at their fair values and are subsequently subject to Pursuant to Article 13 (5) of the Law no. 6107 governing Iller Bank INC.., the reserve requirements of the Banking Law no. 5411 do not valuation at fair value. Gains and losses resulting from the valuation are included in the profit and loss accounts. apply to Iller Bank.

If a financial asset is not measured at amortized cost or if fair value changes are reflected in other comprehensive income, then the fair VIII. Remarks on netting financial assets value change is measured at fair value through profit or loss. However, for certain investments in equity instruments that are measured at fair value through profit or loss, the method of reflecting subsequent changes in fair value to other comprehensive income is irrevocable Financial assets and obligations are shown in the balance sheet on the basis of their netted value only in situations where the Bank has for the first time in the financial statements. the legal right and the power to compel such netting as well as the intention to collect on or to pay off such financialassets and liabilities at their net value or where the Bank has the right to simultaneously wind up such financial assets and obligations. The Bank’s Niğbaşı Niğde Beton Sanayi A.Ş. shareholding of the financial assets at fair value through profit or loss with less than 10% share and voting power. and Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. Both companies listed on the BIST are valued at the balance sheet IX. Remarks on sale and repurchase agreements, security lendings date with the prices in BIST. As of the end of the reporting period, the Bank had no transactions made under agreements calling for selling and buying backsecurities Financial Assets at Fair Value Through Other Comprehensive Income (repo) or transactions involving securities which had been purchased with sell-back commitment (reverse repo).

In addition to the collection of contractual cash flows of the financial asset and the retention of a financial asset in the context of a business X. Information on assets held for sale and fixed assets associated with discontinued operations and model, the financial asset’s fair value difference when the contractual terms of the financial asset lead to cash flows that include the pay- ments of interest on the principal and principal balance on certain dates. it is classified as being reflected in other comprehensive income. remarks on obligations concerning these assets The assets which meet the criteria for categorization as assets held for sale shall be recognized over their book values; applicationof Financial assets whose fair value difference is reflected in other comprehensive income are recorded with the addition of transaction costs depreciation for such assets shall be suspended. These assets shall be recognized separately on the balance sheet. In order for an asset to their acquisition costs which reflect their fair value. Financial assets at fair value through profit or loss are carried at fair value. Inte- to be considered asset held for sale, the asset (or asset group to be disposed of) in question should be available for immediate sale under rest income calculated by effective interest rate of marketable securities whose fair value difference is reflected to other comprehensive the conventional and frequently observed conditions applicable to the sale of such assets (or asset group to be disposed of), and should income and dividend income of marketable securities are reflected to income statement. The difference between the fair value and the command a high likelihood of sale. In order for the asset to have a high likelihood of sale, a plan should be made by an appropriate ma- amortized cost of financial assets at fair value through profit or loss is the difference between the fair value and the amortized cost of the nagement level for the sale of the asset (or the asset group to be disposed of), and an active program to conclude the plan through the asset until the realization of the asset, the disposal, disposal or weakness of the asset. and da Accumulated Other Comprehensive Income identification of buyers should have been commenced. Furthermore, the asset (or the asset group to be disposed of) should be marketed or Expense to be Reclassified to Profit or Loss ında under shareholders’ equity. When these securities are collected or disposed of, the actively at a price tag consistent with its fair value. A variety of incidents or circumstances may extend the term of completion of the sale accumulated fair value differences reflected in the shareholders’ equity are reflected to the income statement. to more than one year. Financial Assets measured at amortized cost In case there is sufficient evidence to conclude that such delay arose due to incidents or circumstances outside the control of the enterp- Financial asset is classified as a financial asset measured at amortized cost if the financial asset is held under a business model aiming at rise, and that the enterprise’s sale plans regarding the sale of the asset (or the asset group to be disposed of), such assets shall remain in collecting contractual cash flows and the terms of the contract for financial assets cause cash flows that include interest payments due to the assets held for sale category. principal and principal balance at certain dates. . Financial assets measured at amortized cost are initially measured at fair value plus any A discontinued operation is a part of the bank’s business categorized as disposed-of or held-for-sale. transaction costs incurred at their acquisition costs, and are measured at amortized cost using the maliyet effective interest (internal rate) method İt. Interest income from financial assets measured at amortized cost is reflected to the income statement. The results regarding the discontinued operations are shown separately on the income statement. The bank has no property or disconti- nued operations recognized under the fixed assets held for sale account. Loans

Loans and receivables are financial assets that are created whenever a borrower is provided with money, goods, or services. Loans and receivables are initially booked at their acquisition cost.

As required by its governing law, the Bank extends loans only to local governments. Loans are booked on the basis of their acquisition costs. Guarantees of loans, shares transferred to the bank to be distributed from the general budget tax revenues to the local administ- rations, and drinking water of municipalities, terminal, rent etc. they’re incomes. All borrowings of the bank are carried at amortized cost. 110 111

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

XI. Remarks on goodwill and other intangible fixed assets XII. Remarks on tangible fixed assets (Continued)

As of the balance sheet date, there were no goodwill items that needed to be shown in the financial statements. Investment properties

Goodwill and other intangible assets are recognized at cost in accordance with the Standard Accounting Standard for Intangible Assets “Investment properties” are real estate properties that are held for the purpose of securing rental and/or appreciation income. Investment ”(38 TAS 38”). properties are recognized as an asset where the future economic benefits will probably be registered with the enterprise, and the cost of the investment property can be appraised reliably. Investment properties are recognized on the basis of their costs. The costs of intangible assets that were acquired before 01 January, 2005 were inflation-adjusted for the period until 31 December 2004, which is the date the period of high inflation was deemed to have ended by the authorities. Assets acquired thereafterwere descended in XIII. Remarks on leasing transactions the financial statements on the basis of their initial acquisition cost. The Bank has no leasing transactions. The Bank is involved in some rental transactions which are not in the nature of financial leasing Intangible assets are depreciated according to the straight-line method with an assumed economically useful lifetime of threeto five years. but which arise from its letting out real estate properties that are not used in the conduct of its banking business. The income from such The useful lifetime of an asset is determined on the basis of a consideration of such issues as how long the asset can be expected to be operating lease arrangements are reported for the periods with which they are associated and are shown in the income statement using useful; technical, technological, and other forms of obsolescence; and the maintenance costs that will be required to secure the economic the straight-line method. benefit expected from the asset. As of the end of the reporting period, bank-owned real estate properties let within the frame of operating lease were classified as“invest- If there is an indication of impairment, the recoverable amount of the related asset is determined as “ (“TMS 36”) and the amount of the ment properties” in the balance sheet. “Investment properties” are real estate properties that are held for the purpose of securing rental recoverable amount of the related asset If the carrying amount is less than the carrying amount, provision for impairment is booked. and/or appreciation income. They are shown at their cost value less any accumulated depreciation and accumulated impairments in value. Subject to compliance with accepted criteria, costs that are involved in altering any part of an existing investment property are included in XII. Remarks on tangible fixed assets the value shown for it in the balance sheet. Amounts that are spent for the day-to-day maintenance of investment properties, however, The costs of tangible assets that were acquired before 01 January, 2005 were inflation-adjusted for the period until 31 December 2004, are not included. The straight-line method is used when depreciating investment properties and the depreciation period is taken as 50 which is the date the period of high inflation was deemed to have ended by the authorities. Assets acquired thereafterwere descended in years. The real estate property being rented out was appraised mostrecently in 2016 by an appraisal firm authorized by BRSA. Because the financial statements on the basis of their initial acquisition cost. Depreciation for tangible assets is set asidein equal amounts using the the assessed value was higher than the book value, no provisionfor value impairment was set aside. In the period covered in the report, no straight-line method based on cost values and estimated useful lifetimes. sign of real estate impairment was observed. The valuation transactions are planned to be recurred for 2016.

In the case of an asset that was in the inventory for less than a full fiscal year as of the end of the reporting period, the amountof depreci- Lease payments on operating leases are recorded as expense on an equal basis over the lease term. ation that is set aside is determined by prorating the amount that would have been set aside for a full year accordingto the length of time that the asset was in the inventory. XIV. Remarks on provisions and contingent liabilities Provisions and contingent liabilities are accounted for in accordance with the communiqué on “Turkish Accounting Standardconcerning In situations where there is an indication that an asset’s value may have suffered impairment, the Bank estimates the recoverablevalue of Provisions, Contingent Liabilities, and Contingent Assets” (“TMS 37”). the asset within the framework of “Turkish Accounting Standard concerning the Impairment of Value in Assets” (“TMS 36”).If the recove- rable value is less than the book value, the difference is booked as “provision for losses”. Provisions are entered into the accounts in situations where, as of the balance sheet date, there is an existing or pre-existing legal or structural obligation, there is a possibility ofhaving to dispose of economically beneficial resources in order to fulfill the obligation, and it is The gain or loss that arises when a tangible fixed asset is disposed of is determined by subtracting the net book value of theasset concer- possible to make a reliable estimate as to the amount of the obligation. For obligations that arise as a consequence of events transpiring ned from the proceeds secured from its sale. The resulting difference is shown in the income statement as a profit or loss. in earlier reporting periods, provisions are set aside during the reporting period in which the obligations are incurred, in keeping with the Tangible fixed assets are not encumbered by any pledges, mortgages, or other cautionary attachments or by any commitmentsentered principle of “periodicity”. In situations where the amount cannot be estimated, the obligation is treated as being “contingent”. A provision is into for their acquisition, or by any other issues that might limit the exercise of their dispositional rights. There are no changes involving set aside for a contingent liability only if the likelihood of the liability occurring is high and if it can be reliably quantified. tangible assets which occurred during the reporting period or which are anticipated in the future that might have a significant impact on accounting assumptions. XV. Remarks on obligations related to employee entitlements

For the authorization and pricing of the BRSA, pricing was made for the formal authorization of the BRSA and deprived of its impairment. Pursuant to Article 11/1 of the Law no. 6107 governing Iller Bank INC.. published in the Official Gazette issue 27840 dated 8 February The rates used for depreciation of property, plant and equipment and the estimated life expectancy are as follows. 2011 and within the frame of the provision that reads “Duties required by the Bank’s services will be carried out via contractual personnel who are not subject to the Law 657 on Civil Servants dated 14 July 1965” and to the provisions of other lawsgoverning contractual person- nel; the Bank renders its services via white-collar employees, and blue-collar workers subject to theLabor Law in line with the “Iller Bank

Tangible fixed assets Estimated Useful Life (Years) Depreciation rate (%) Human Resources Regulation” published in the Official Gazette issue 28518 dated 04 January, 2013.

Buildings and cashboxes 50 2

Office machines, furniture, interior fittings, other movables 3-10 33,33-10

Transportation vehicles 4-10 25-10 112 113

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

XV. Remarks on obligations related to employee entitlements (Continued) XVI. Remarks on tax-related issues (Continued)

Pursuant to Article 4(c), subparagraphs 1 and 2 of the Social Security and General Health Insurance Law no. 5510, retirementbenefits for Deferred taxes those contractual personnel who have started work prior to 01 October, 2008 are subject to the requirements of the Civil Servants Pension Fund, whereas the same for those who have started work after 01 October, 2008 are subject to the requirements of the Social Security BThe Bank calculates “deferred tax” for taxable transitory differences between the book value of an asset or obligation and thetaxable Institution (for employees). As required by Article 1 of the Law no. 6107 governing Iller Bank INC.., the Bank is a “special budget” institution value as prescribed by tax laws, which are then booked to account as per the requirements of the “Turkish Accounting Standard concerning which is subject to the provisions of private law. In the aftermath of the enforcement of Law No. 6107 governing Iller Bank, in the case of Formal Income Tax” (“TMS 12”). those bank personnel who wish to remain subject to the requirements of the Civil Servants Pension Fund with respect to their retirement When calculating such deferred tax, the Bank makes use of the statutorily mandated tax rates that are currently in effect as of the end of benefits, or those who wish to work on a contract basis, the retirement bonuses are paid by the Civil Servants Pension Fund, after which the reporting period. Whenever calculating taxable transitory differences on deferred tax obligations, the Bank determines that deferred the Fund makes a recourse to the Bank making a demand there of for reimbursement of the amounts so paid to that Fund. tax assets arising from deductible transitory differences exist only on condition that there is a strong likelihood of securing a taxable profit In the case of those whose retirement benefits are subject to therequirements of the Social Security Institution (for employees), severance in the future and therefore, of being able to benefit from those differences The deferred tax is calculated over the tax rates that have been pays are paid by the Bank to the relevant personnel upon their retirement. Provisions are set aside for the relevant contractual personnel enacted in the period when the assets are formed or the liabilities are fulfilled (2018- 22%) and they are recorded as income or expense in for retirement bonuses on the basis of actuarial calculations and within the framework of the “Turkish Accounting Standard concerning the income statement. Employee Benefits” (“TMS 19”). If transactions and other events are recognized in profit or loss, the related tax effects are also recognized in profit or loss. If transactions In the case of personnel in “blue-collar worker” status who are employed by the Bank, provision is set aside on the basis of the netpresent and other events are recognized directly in the shareholders ‘equity, the related tax effects are also recognized directly in the shareholders’ value of the service award provision as required by the Labor Law, which is calculated on an actuarial basis, within theframework of the equity. Calculated deferred tax assets and deferred tax liabilities are netted off in the financial statements. In the event that the income “Turkish Accounting Standard concerning Employee Benefits” (“TMS 19”). balance remains as a result of deferred tax asset and net offsetting, deferred tax income is not subject to profit distribution and capital increase. In accordance with the related circular of BRSA, deferred tax income is not taken into consideration in profit distribution. XVI. Remarks on tax-related issues XVII. Additional remarks on borrowings Under the Corporate Income Tax All lendings are made from the Bank’s own equity resources. The Bank also acts as an intermediary in the lending of a variety offunds that Law nr. 5520, the corporate income tax rate is 20%. This rate is applied to the “corporate income tax assessment base”, which is arrived at are made available as budget grants. by subtracting all legally allowed exclusions (such as excluded earnings) and deductions from and by adding all expenses that are non-de- ductible under tax laws to corporate earnings. Under the Bank’s governing statute, 15% withholding tax is accrued on the 51% portion Article 2 of the Communiqué yayımlan Communiqué on the Amendment to the General Communiqué on Public Treasury eklen published allocated from the Bank’s profit for infrastructure and superstructure needs of municipalities and villages, which is paid during the relevant in the Official Gazette dated 28 February 2018 and numbered 30346 and paragraph 5 of the Communiqué No. 5 of Genel İller Bankası A.Ş. period. the financial resources of the municipalities and special provincial administrations which have partnerships, as stipulated in Article 6 of this Communiqué; The Bank provides funds from its shareholders. On a quarterly basis, companies calculate advancetax at the rate of 20% of financial profits. They then declare the advance tax by the 14th day of the second month following theend of each quarter and pay it by the evening of the 17th day. The advance tax paid during any year The external resources that the Bank currently has obtained from abroad consist of long-term credits that it has received from the World applies to that year and it isset off against the amount of corporate income tax shown as due in the corporation tax return filed in the year Bank to make available to municipalities under the “Municipal Services Project” and from the Japan International Cooperation Agency (JICA) following that one. If any tax prepaid in this way remains after such offsetting, it may be refunded in cash or it may be set off against any under the Municipal Sewage and Waste Water Treatment Plants Development Project, or from European Investment Bank (EIB) under the other financial obligations owed to the government. “Urban Infrastructure Project”. These are entered into the Bank’s records on the date on which the credit agreements are signed.

75% of the gains realized on the sale of equity stakes and of real estate properties which have been held on to for at least twoyears are XVIII. Remarks on issued stocks exempt from corporate income tax, provided that they are capitalized or are maintained in a special liability-side account for five years’ The Bank’s capital is collected in the manner mandated by the Bank’s own governing statute and no shares whatsoever are issued for time as prescribed in the corporate income tax law. However; the assets held by the entities, which are engaged in the trading and leasing capital collection purposes. of securities and real estate, for such purposes are excluded from the exemption.

There is no mechanism in the Turkish tax law whereby unrelated tax payables and receivables may be set off against each other. By the XIX. Explanations on government incentives evening of the 25th day of the fourth month following the end of a fiscal year, companies must file a corporate income taxreturn with the There are no endorsements or acceptances which are shown as obligations owed on assets tax office with which they are registered. Those who are authorized to conduct tax examinations may, however, examine any accounting records for the most recent five years and if any errors in them are found, the amounts of payable tax may change. XX. Explanations on government incentives

The Bank is a subsidiary of the special budget does not receive any incentives from the state budget. 114 115

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

XXI. Explanations on the headings used in this report XXII. Explanations on other issues (Continued)

The scope of Iller Bank’s activities is defined as “satisfying the financing need of special provincial authorities, municipalities, theiraffiliated Transactions involving financial assets that are held for trading purposes are entered into and removed from account on a “delivery date” organizations and of local administrative associations of which only these may be members; develop projects concerning locally-provided basis. Such financial assets held for trading are initially shown in the balance sheet at cost, after which they are valuedon a fair-value basis. common services for the people dwelling within the boundaries of such administrations; providing suchadministrations with consultancy services and assistance on urban projects of a technical nature and in the conduct of infrastructure and superstructure works, and per- The positive difference between the fair value of financial assets held for trading purposes and their cost of acquisition is accounted for as forming any and all development and investment banking functions”. The Bankpursues its activities in the status of a development and interest income. However if the fair value of a financial asset is higher than its amortized cost value, the positive difference between the investment bank under Article 77 of the Banking Law no. 5411. two is treated as a capital market trading profit and is credited to that account. On the other hand, if the fair value of a financial asset is lower than its amortized cost value, the negative difference between the two is treated as a capital market trading loss and is booked to XXII. Explanations on other issues that account.

Cash and cash equivalents Available-for-sales financial assets:

For the purpose of preparing cash flow statements, the term “cash item” is taken to mean cash on hand, banknotes, monies intransit, and Available-for-sale financial assets are financial assets that can be classified neither as “Loans and receivables” nor as “Financialassets held purchased bank checks as well as demand accounts held in banks including the Central Bank of Turkey (TCMB). The term“cash equivalents” to maturity” or as “Financial assets at fair value through profit/loss”. The Bank’s available-for-sale financial assets consist of its shares in is taken to mean interbank money market investments, fixed-term bank accounts whose original maturitiesare less than three months, Niğbaş Niğde Beton Sanayi INC.. and Emlak Konut Gayrimenkul Yatırım Ortaklığı AŞ, firms in which the Bank’s shareholding interest and and investments in marketable securities. voting rights amount to less than 10% of the total andover which the Bank has no significant control.

TFRS 9 Financial Instruments Standard Loans and receivables:

TFRS 9 Financial Instruments, which is related to the classification and measurement of financial instruments published in the Official Loans and receivables are financial assets that are created whenever a borrower is provided with money, goods, or services. Loans and Gazette dated 19 January 2017 and numbered 29953 by the Public Oversight Accounting and Auditing Standards Authority, is effective receivables are initially booked at their acquisition cost. from 1 January 2018. As required by its governing law, the Bank extends loans only to local governments. Loans are booked on the basis of their acquisition TFRS 9 sets new principles for the classification and measurement of financial instruments, expected impairment loss for financial assets costs. The guarantees for these lendings consist of; (1) allotments of general budget tax revenues that are supplied to the Bankfor distri- and hedge accounting. bution among local governments and (2) municipalities’ potable water, terminal, rent, and other income.

According to TFRS 9, the classification and measurement of financial assets is determined based on the business model in which the Pursuant to Article 13 (5) of the Law no. 6107 governing Iller Bank INC.., the reserve requirements of the Banking Law no. 5411 do not financial asset is managed and whether it is based on contractual cash flows that include interest payments on principal and principal apply to Iller Bank. balance. Investments held to maturity: The impact of the TFRS 9 provisions on our Bank is only for the classification of financial instruments. In the prior period, the listed stocks Investments held to maturity are financial assets which are acquired with the intention of retention until they have matured andsatisfy classified as available-for-sale are classified as financial assets at fair value through profit or loss in the current period. all of the prerequisites (including funding capability) for holding until maturity, which have fixed terms and predeterminedor determinable Explanations on previous accounting policies that are not applicable in the current period payments, and which are neither “loans” nor “receivables”.

Tır TFRS 9 Financial Instruments ın standard has been applied to replace ı TAS 39 Financial Instruments: Recognition and Measurement ı with effect from 1 January 2018. The following are the accounting policies of the TFRS 9 which are currently in force.

Explanations on financial assets

The Bank classifies and accounts for its financial assets as ”Financial assets at fair value through profit or loss”, ”Available-for-sale financial assets m,“ Held to maturity investments finansal or zar Loans and receivables Banka. The purchase and sale transactions of these financial assets are recorded and subtracted from the records.

Financial assets at fair value through profit or loss:

Financial assets held for trading are financial assets which are acquired in order to profit from the fluctuations in the price and similar ele- ments in the short term, or are part of a portfolio to obtain a profit in the short term, regardless of the reason for the acquisition. 116 117

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Deferred tax assets based on provisional margins, in excess of 10% of the core capital (-) - - SECTION FOUR Amounts in excess of 15% of the core capital as per Provisional Article 2, paragraph two, of the Regulation on the Shareholders' Equity of Banks - - Limit excess caused by total net long positions of investments in the core capital elements of non-consolidated banks and financial institutions - - where more than 10% of the shares are held Limit excess caused by mortgage extension rights - - Financial Structure and Risk Management Information: Limit excess caused by deferred tax assets based on provisional margins - - Other items the Board may stipulate - I. Explanations about equity items: Amount to be discounted from the core capital in case of failure to secure sufcient additional primary capital or supplementary capital (-) - Total Discounts from Core Capital 36.345 The capital adequacy standard ratio calculated within the framework of “Equity amount and capital adequacy standard ratio” Regulation Total Core Capital 18.543.980 Regarding Equities of Banks “and” Regulation Regarding Measurement and Evaluation of Banks’ Capital Adequacy “is 45,08% as of 31 ADDITIONAL PRIMARY CAPITAL December 2018. (31 December 2017: 47,82%) Capital and associated issue premiums corresponding to the preferential shares which are not included in the core capital - Agency-approved debt instruments and associated issue premiums - Information on equity items: Agency-approved debt instruments and associated issue premiums (tne ones covered by provisional Article 4) - Additional Primary Capital Before Discounts -

Amount related to Discounts Applicable on the Additional Primary Capital (Current period 31.12.2018) Amount application prior to The bank's direct or indirect investments in its additional primary capital (-) - - 1/1/2014* Banks investing in additional main capital items of the bank and investments made by banks in equity items issued by financial institutions and - - CORE CAPITAL bearing the conditions stated in Article 7 of the Regulation Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the - - The paid-in capital which would have the lowest priority in repayment in case of the liquidation of the Bank 14.847.536 shares are held, in excess of 10% of the Bank's core capital Share certificate issue premiums - The sum of net long positions of investments in additional main capital elements of banks and financial institutions that have 10% or more of their - - ownership and are not consolidated Reserves 1.965.844 Other items the Board may stipulate (-) - Earnings recognized in shareholders' equity as per the Accounting Standards of Turkey (TMS) - Elements that will continue to be deducted from main capital during transition process Profit 1.766.945 Goodwill or other intangible fxed assets and associated deferred tax obligations, which cannot be discounted from the core capital as per Provisional - - Article 2, paragraph one, of the Regulation on the Shareholders' Equity of Banks (-) Net profits for the Period 1.662.354 Net deferred tax assets / tax obligations, which cannot be discounted from the core capital as per Provisional Article 2, paragraph one, of the - - Previous Years Profit 104.591 Regulation on the Shareholders’ Equity of Banks (-)

Bonus Shares of Associates, Subsidiaries and Jointly-Controlled Entities, which are not recognized in the profits for the period - Amount to be discounted from the additional primary capital in case of failure to secure sufficient supplementary capital (-) - Supplementary Capital Before Discounts - Core Capital Before Discounts 18.580.325 Discounts Applicable on the Supplementary Capital - Discounts Applicable on the Core Capital Total of main capital (Main capital= core capital + additional main capital) 18.543.980 Valuation adjustments calculated according to (i) the first paragraph of Article 9 of the Regulation on Owners' Equity of Banks - - SUPPLEMENTARY CAPITAL The part reserves fail to cover in the sum of net loss for the period and the losses for the preceding years, and the losses recognized in - - Agency-approved debt instruments and associated issue premiums - shareholders' equity as per TMS Agency-approved debt instruments and associated issue premiums (the ones covered by Provisional Article 4) - Operational Lease Development Costs (-) - - Provisions (The amounts referred to in the first paragraph of Article 8 of the Regulation on Owners' Equity of Banks) - Goodwill or other intangible fixed assets and related deferred tax obligations - - Supplementary capital before discounts - Except for the rights to provide mortgage services, other intangible assets remained after offset with relevant postponed tax liability 1.176 - Discounts to be made from supplementary capital

Except for deferred tax assets based on temporary differences, the part remained after postponed tax asset, based on taxable incomes to be The bank's direct or indirect investments in its supplementary capital (-) - - 35.169 - obtained in the coming periods, is offset with relevant postponed tax liability Banks investing in additional main capital items of the bank and investments made by banks in equity items issued by financial institutions and - - bearing the conditions stated in Article 8 of the Regulation Differences arising when assets or liabilities that are not monitored at fair value are treated as cash flow hedges - - Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the The part, exceeding total provision amount, of total expected loss calculated pursuant to the Communiqué on Accounting for Loan Risk Based on - - - - shares are held, in excess of 10% of the Bank's core capital (-) Approaches Based on Internal Rating Total net long positions of investments in the additional primary capital and supplementary capital of non-consolidated banks and financial - - Earnings arising from securitization operations - - institutions where 10% or more of the shares are held, in excess of 10% of the Bank's core capital (-) Other items that Board may stipulate (-) - Unrealized profits and losses arising from differences occurred depending on changes loan ratings in the fair value of the Bank's obligations - - Total discounts from supplementary capital - Net amount of defined benefit plan assets - - Total supplementary capital - Direct or indirect investments in which the Bank has made its own core capital - - Total of shareholder’s equity ( Total of main capital and supplementary capital) 18.543.980 Shares acquired in breach of article 56, paragraph four of the Law - - Total of main capital and supplementary capital (total of shareholder’s equity)

Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the Loans Granted in breach of Articles 50 and 51 of Banking Law (-) - - - shares are held, in excess of 10% of the Bank's core capital The amounts in excess of the limit stipulated in article 57, paragraph one of the Law, and net book values of the commodities and real estate the banks were obliged to acquire due to their receivables, and were required to dispose of as per the said article, but were unable to do so within five - Total net long positions of investments in the core capital elements of non-consolidated banks and financial institutions where more than 10% of the - - years from the date of acquisition (-) shares are held, in excess of 10% of the core capital Other accounts the Board may stipulate (-) - Mortgage extension rights in excess of 10% of the core capital - - 118 119

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Elements to be Continued to be Reduced from the Core and Contribution Capital (Capital) in the Transition Process Information on equity items: The part which cannot be discounted of the core capital, additional primary capital, or supplementary capital as per Provisional Article 2, paragraph one of the Regulation on the Shareholders' Equity of the Banks, out of the total net long positions of investments in the shareholders' equity of - - 1/1/2014 Amount nonconsolidated banks and financial institutions where 10% or less of the shares are held, in excess of 10% of the Bank's core capital (Previous Period 31.12.2017) Amount related to application The part which cannot be discounted of the additional primary capital or supplementary capital as per Provisional Article 2, paragraph one of prior * the Regulation on the Shareholders' Equity of the Banks, out of the total net long positions of investments in the additional primary capital and - - supplementary capital of non-consolidated banks and financial institutions where more than 10% of the shares are held CORE CAPITAL The part which cannot be discounted of the core capital as per Provisional Article 2, paragraph one of the Regulation on the Shareholders' Equity of The paid-in capital which would have the lowest priority in repayment in case of the liquidation of the Bank 13.122.184 the Banks, out of the net long positions of investments in the core capital of non-consolidated banks and financial institutions where more than 10% - - of the shares are held, as well as of the deferred tax assets based on provisional margins and of mortgage extension rights to be discounted of the Share certificate issue premiums - core capital as per Provisional Article 2, paragraph two, sub-paragraphs (1) and (2) of the Regulation on the Shareholders' Equity of the Banks Reserves 1.819.304 SHAREHOLDER’S EQUITY 18.543.980 - Earnings recognized in shareholders' equity as per the Accounting Standards of Turkey (TMS) Total of shareholder’s equity ( Total of main capital and supplementary capital) 18.543.980 - Profit 1.071.306 Total risk-weighted amounts 40.247.337 - Net profits for the Period 985.808 CAPITAL ADEQUACY RATIOS Previous Years Profit 85.498 Core Capital Adequacy Ratio (%) 46,08 - Bonus Shares of Associates, Subsidiaries and Jointly-Controlled Entities, which are not recognized in the profits for the period - Main Capital Adequacy Ratio (%) 46,08 - Core Capital Before Discounts 16.012.794 Capital Adequacy Ratio (%) 46,08 - Discounts Applicable on the Core Capital

BUFFERS Valuation adjustments calculated according to (i) the first paragraph of Article 9 of the Regulation on Owners' Equity of Banks - - Total additional core capital ratio requirement (abc) 1,875 - The part reserves fail to cover in the sum of net loss for the period and the losses for the preceding years, and the losses recognized in - - a) Capital protection buffer ratio (%) 1,875 - shareholders' equity as per TMS (-) Operational Lease Development Costs (-) - - b) Bank-specific cylical capital buffer ratio (%) 0,00 - Goodwill or other intangible fixed assets and related deferred tax obligations - - c) Systemically important bank buffer ratio (%) ** 0,00 Except for the rights to provide mortgage services, other intangible assets remained after offset with relevant postponed tax liability 2.013 2.768 The ratio of the additional core capital amount to be calculated according to the first paragraph of Article 4 of the Regulation on Capital Protection 38,07 - and Cyclical Capital Buffers to the risk weighted assets (%) Except for deferred tax assets based on temporary differences, the part remained after postponed tax asset, based on taxable incomes to be - - Amounts Remaining Under Excess Amount for applicable discount principles obtained in the coming periods, is offset with relevant postponed tax liability Partnership share of 10% or less owned and unconsolidated banks and financial institutions to the amount of the equity component of investments Differences arising when assets or liabilities that are not monitored at fair value are treated as cash flow hedges - - - - arising from net long position The part, exceeding total provision amount, of total expected loss calculated pursuant to the Communiqué on Accounting for Loan Risk Based on - - Subsidiaries owned more than 10% of the shares and unconsolidated banks and financial institutions to the amount of core capital elements arising Approaches Based on Internal Rating - - from net long position of investments Earnings arising from securitization operations - - Amount caused by mortgage extension rights - - Unrealized profits and losses arising from differences occurred depending on changes loan ratings in the fair value of the Bank's obligati-ons - - Amount caused by deferred tax assets based on provisional margins - -

Limits on Provisions Considering Contribution Capital Calculation Net amount of defined benefit plan assets - - Direct or indirect investments in which the Bank has made its own core capital - - General provisions for receivables using the standard approach (prior to limit of one hundred twenty five per ten thousand) - - Shares acquired in breach of article 56, paragraph four of the Law - - The portion of the general allowances for receivables using the standard approach up to 1.25% of the total risk weighted amount - - Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the The part, exceeding total provision amount, of total expected loss calculated pursuant to the Communiqué on Accounting for Loan Risk Based on - - - - shares are held, in excess of 10% of the Bank's core capital Approaches Based on Internal Rating. The part, exceeding total provision amount, of total expected loss calculated pursuant to the Communiqué on Accounting for Loan Risk Based on Total net long positions of investments in the core capital elements of non-consolidated banks and financial institutions where more than 10% of the - - - - Approaches Based on Internal Rating, of which part is up to 0.6% of the total risk-weighted amount of receivables. shares are held, in excess of 10% of the core capital

Borrowing instruments subject to Provisional Clause 4 (to be applied between 1 January 2018 and 1 January 2022) Mortgage extension rights in excess of 10% of the core capital - -

The upper limit for additional main capital items subject to the provisions of Temporary Article 4 - - Deferred tax assets based on provisional margins, in excess of 10% of the core capital (-) - -

The amount exceeding the upper limit of additional main capital items subject to the provisions of Provisional Article 4 - - Amounts in excess of 15% of the core capital as per Provisional Article 2, paragraph two, of the Regulation on the Shareholders' Equity of Banks - - Limit excess caused by total net long positions of investments in the core capital elements of non-consolidated banks and financial institutions - - The upper limit for the contribution capital items subject to the provisions of Temporary Article 4 - - where more than 10% of the shares are held The portion of the contribution capital items exceeding the upper limit subject to the provisions of Temporary Article 4 - - Limit excess caused by mortgage extension rights - - Limit excess caused by deferred tax assets based on provisional margins - - (*) The amount to be taken into account under the transition provisions. Other items the Board may stipulate - (**) Only Systemic Important Banks on paragraph 4 of Article 4 of the Regulation within the scope of the obligation to prepare consolidated financial statements are not to be filled by sys- Amount to be discounted from the core capital in case of failure to secure sufcient additional primary capital or supplementary capital (-) - temically important banks, other banks will be reported as zero. Total Discounts from Core Capital 2.013 Total Core Capital 16.010.781 ADDITIONAL PRIMARY CAPITAL Capital and associated issue premiums corresponding to the preferential shares which are not included in the core capital - Agency-approved debt instruments and associated issue premiums - 120 121

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Agency-approved debt instruments and associated issue premiums (tne ones covered by provisional Article 4) - CAPITAL ADEQUACY RATIOS Additional Primary Capital Before Discounts - Core Capital Adequacy Ratio (%) 48,11 - Discounts Applicable on the Additional Primary Capital Main Capital Adequacy Ratio (%) 47,82 - The bank's direct or indirect investments in its additional primary capital - - Banks investing in additional main capital items of the bank and investments made by banks in equity items issued by financial institutions and Capital Adequacy Ratio (%) 47,82 - - - bearing the conditions stated in Article 7 of the Regulation BUFFERS Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the - - shares are held, in excess of 10% of the Bank's core capital Total additional core capital ratio requirement (abc) 1,250 - The sum of net long positions of investments in additional main capital elements of banks and financial institutions that have 10% or more of their a) Capital protection buffer ratio (%) - - - 1,250 ownership and are not consolidated b) Bank-specific cylical capital buffer ratio (%) 0,00 - Other items the Board may stipulate - Elements that will continue to be deducted from main capital during transition process c) Systemically important bank buffer ratio (%) ** 0,00 Goodwill or other intangible fxed assets and associated deferred tax obligations, which cannot be discounted from the core capital as per Provisional The ratio of the additional core capital amount to be calculated according to the first paragraph of Article 4 of the Regulation on Capital Protection 503 - 40,11 - Article 2, paragraph one, of the Regulation on the Shareholders' Equity of Banks (-) and Cyclical Capital Buffers to the risk weighted assets (%) Net deferred tax assets / tax obligations, which cannot be discounted from the core capital as per Provisional Article 2, paragraph one, of the Amounts Remaining Under Excess Amount for applicable discount principles 96.883 - Regulation on the Shareholders’ Equity of Banks (-) Partnership share of 10% or less owned and unconsolidated banks and financial institutions to the amount of the equity component of investments - - Amount to be discounted from the additional primary capital in case of failure to secure sufficient supplementary capital (-) - arising from net long position Supplementary Capital Before Discounts - Subsidiaries owned more than 10% of the shares and unconsolidated banks and financial instituti-ons to the amount of core capital elements arising - - Discounts Applicable on the Supplementary Capital - from net long position of investments Total of main capital (Main capital= core capital + additional main capital) 15.913.395 Amount caused by mortgage extension rights - - SUPPLEMENTARY CAPITAL Amount caused by deferred tax assets based on provisional margins - - Agency-approved debt instruments and associated issue premiums - Limits on Provisions Considering Contribution Capital Calculation Agency-approved debt instruments and associated issue premiums (the ones covered by Provisional Article 4) - General provisions for receivables using the standard approach (prior to limit of one hundred twenty five per ten thousand) - - Provisions (The amounts referred to in the first paragraph of Article 8 of the Regulation on Owners' Equity of Banks) - Supplementary capital before discounts - The portion of the general allowances for receivables using the standard approach up to 1.25% of the total risk weighted amount - - The part, exceeding total provision amount, of total expected loss calculated pursuant to the Com-muniqué on Accounting for Loan Risk Based on Discounts to be made from supplementary capital - - Approaches Based on Internal Rating. The bank's direct or indirect investments in its supplementary capital (-) - - The part, exceeding total provision amount, of total expected loss calculated pursuant to the Com-muniqué on Accounting for Loan Risk Based on Banks investing in additional main capital items of the bank and investments made by banks in equity items issued by financial institutions and - - - - Approaches Based on Internal Rating, of which part is up to 0.6% of the total risk-weighted amount of receivables. bearing the conditions stated in Article 8 of the Regulation Borrowing instruments subject to Provisional Clause 4 (to be applied between 1 January 2018 and 1 January 2022) Total net long positions of investments in the shareholders' equity of non-consolidated banks and financial institutions where 10% or less of the - - shares are held, in excess of 10% of the Bank's core capital (-) The upper limit for additional main capital items subject to the provisions of Temporary Article 4 - - Total net long positions of investments in the additional primary capital and supplementary capital of non-consolidated banks and financial - - The amount exceeding the upper limit of additional main capital items subject to the provisions of Provisional Article 4 - - institutions where 10% or more of the shares are held, in excess of 10% of the Bank's core capital (-) Other items that Board may stipulate (-) - The upper limit for the contribution capital items subject to the provisions of Temporary Article 4 - -

Total discounts from supplementary capital - The portion of the contribution capital items exceeding the upper limit subject to the provisions of Temporary Article 4 - - Total supplementary capital - Total of shareholder’s equity ( Total of main capital and supplementary capital) 15.913.395 (*)Amounts to be taken into consideration in the context of transition provisions. Total of main capital and supplementary capital (total of shareholder’s equity)) (**)The systemic significant bank buffer rate is shown as ”0,00 Yönetmelik in the unconsolidated financial report since it is required to be filled by systemically important banks which are not Loans Granted in breach of Articles 50 and 51 of Banking Law - obliged to prepare consolidated financial statements in accordance with paragraph 4 of Article 4 of the“ Regulation on Systemic Banks Sistem. The amounts in excess of the limit stipulated in article 57, paragraph one of the Law, and net book values of the commodities and real estate the banks were obliged to acquire due to their receivables, and were required to dispose of as per the said article, but were unable to do so within five - The difference between the amounts included in the balance sheet and shareholders’ equity items in the balance sheet items that are years from the date of acquisition considered in equity calculation is TRL36.345; TRL 1.176 from Intangible Fixed Assets and TRL 35.169 from Net Deferred Tax Assets. Other accounts the Board may stipulate -

Elements to be Continued to be Reduced from the Core and Contribution Capital (Capital) in the Transition Process The part which cannot be discounted of the core capital, additional primary capital, or supplementary capital as per Provisional Article 2, paragraph one of the Regulation on the Shareholders' Equity of the Banks, out of the total net long positions of investments in the shareholders' equity of - - nonconsolidated banks and financial institutions where 10% or less of the shares are held, in excess of 10% of the Bank's core capital The part which cannot be discounted of the additional primary capital or supplementary capital as per Provisional Article 2, paragraph one of the Regulation on the Shareholders' Equity of the Banks, out of the total net long positions of investments in the additional primary capital and - - supplementary capital of non-consolidated banks and financial institutions where more than 10% of the shares are held The part which cannot be discounted of the core capital as per Provisional Article 2, paragraph one of the Regulation on the Sharehol-ders' Equity of the Banks, out of the net long positions of investments in the core capital of non-consolidated banks and financial instituti-ons where more than - - 10% of the shares are held, as well as of the deferred tax assets based on provisional margins and of mortgage extension rights to be discounted of the core capital as per Provisional Article 2, paragraph two, sub-paragraphs (1) and (2) of the Regulation on the Shareholders' Equity of the Banks SHAREHOLDER’S EQUITY 15.913.395 -

Total of shareholder’s equity ( Total of main capital and supplementary capital) 15.913.395 -

Total risk-weighted amounts 33.278.926 - 122 123

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

II. Explanations on credit risk

Credit risk refers to the probability that the Bank shall suffer loss caused by the credit customer’s lack of compliance with the agreement requirements thus partial or complete inability to fulfill its responsibilities. Total amount of incurred risks after offsets. and average of risks sorted on the basis of different risk classes and Provided that it is in accordance with the legal regulations, credit extension authority in the Bank belongs to the Board. The Board is obli- ged to establish the policies related to accreditation, approval and other administrative principals, ensure implementation and monitoring types. disregarding the impact of credit risk reductions, of those and take the necessary precautions. The Board can transfer its rights to accredit to the Loans Committee and/or Headquarters. Current Period Previous Period Average Risk Average Risk Headquarters can use this transferred accreditation authority through its affiliated units or regional directorates. Written recommendation RISK CLASSES (31.12.2018) (31.12.2017) Risk Amount Amount of the Headquarters is necessary for the accreditation by the Board or transferal of authority. The Board determines the credit policies and Risk Amount* Amount * limits on macro levels, establishes the policies related to accreditation, approval and other administrative principals. Contingent and Non-Contingent Receivables from Central Governments and Central Banks 63 77 60 79 Contingent and Non-Contingent Receivables from Regional or Local Governments 29.978.759 26.029.887 22.851.415 19.322.423 Since the Bank is not engaged in banking operations other than lending to local governments, it is not subjected to the debit and sectorial Contingent and Non-Contingent Receivables from Administrative Units and Non-Commercial Enterprises - - - - risk concentration limitation. Contingent and Non-Contingent Receivables from Multilateral Development Banks - - - - Credit Risk is monitored in accordance with the Lending Regulations and Risk and Authority Limits Application Methods. Also credit risk Contingent and Non-Contingent Receivables from International Organizations - - - - is monitored by being calculated with the standard method at the forms prepared for Credit Risk management under Base II standards. Contingent and Non-Contingent Receivables from Banks and Financial Intermediaries 2.833.339 2.331.019 1.776.850 2.727.557

There is no other internal method is used in order to calculate the credit risk. Contingent and Non-Contingent Corporate Receivables - - - -

Contingent and Non-Contingent Retail Receivables 36.234 36.809 26.997 30.545 Bank does not carry out analytic loan valuation. However, credits are categorized as collateral, restructured etc. and concentration, col- lateral, return and monitoring of credits are submitted to top management in the Risk Evaluation Reports prepared on monthly basis in Contingent and Non-Contingent Receivables with Real Estate Collateral - - - - terms of credit risk. Non-Performing Receivables - - - - Receivables considered High Risk by the Board - - - -

Drinking water, rent, terminal, parking, harbor and other business costs of the local governments who currently wants to use credit in the Securities with Mortgage Collateral - - - - bank are taken as a collateral and credit is granted in return of these collateral. In the application in subject, Bank debits the local gover- Securitization Positions - - - - nments using credit, makes payment to contractor company and income regarding the collateral are gathered in an account and put in Short Term Receivables from Banks and Financial Intermediaries and Short Term Corporate Receivables - - - - pledge with a pledge agreement on the account. Bank concludes asecured account agreement with the protocol bank branch in the local Investments as Collective Aid Organization - - - - government’s location. According to the agreement, local government opens a new secured account in the bank branch in its region and collects all the drinking water, rent, terminal, parking, harbor and other business incomes pledged as collateral in this account. Even though Other Receivables 7.037.706 7.322.428 7.852.884 9.052.133 the Bank enjoys a robust collateral structure, the assets comprising the collateral for the credits extended do not fit into the collateral GRAND TOTAL 39.886.101 35.720.220 32.507.936 31.132.736 categories provided in Basel II criteria.. (*) Includes the total amounts prior to the consideration of Credit Risk Reduction impacts,

Therefore, credit risk measurements are not rated not scored in the Bank. Non-cash credits that are compensated have the same risk The top 100 and top 200 cash loans extended by the Bank correspond respectively to %75,06 (31 December 2017: %75,62) and %85,95 weight as the mature unsettled credits. (31 December 2017: % 86,53) of its total cash lending. The Bank observes best practices within the frame of BRSA regulations and restrictions, and thus ensures management of credit risk in The top 100 and top 200 non-cash loans extended by the Bank correspond respectively to %95,03 (31 December 2017: %92,31) and accordance with its volume, quality and complexity of its lending. The Amount Subject to Credit Risk at the Bank is calculatedwithin the %98,93 (31 Aralık 2017: %98,60) of its total non-cash lending. framework of statutory reporting, using the “Standard Method” on a monthly basis; it is included in the calculation of the Bank’s Capital Adequacy Standard Ratio. The Bank submits reports on its credit risk exposure to the BRSA under applicable legislation (Basel II). An assessment of the Bank’s cash and non-cash credits based on their dimensions shows that the combined value of the 100 and 200 biggest clients’ accounts respectively make up %66,02 (31 December 2017: %67,37) and %75,57 (31 December 2017: %77,28) of all cash The Bank’s activities are governed by article 77 of the Banking Law no 5411, and it is not subject to the general credit limits defined in and non-cash credits. Article 54 of that act. However, the Bank extends credit in accordance with the Statute on Allotments of General Budget Revenues to be Allocated to Special Provincial Authorities and Municipalities. and against municipal revenues posted as collateral. The Bank is not required to set aside provisions for its loans pursuant to Article 13 (5) of the Law nr. 6107 governing Iller Bank INC. 124 125

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

II. Explanations on credit risk (Continued) Profile Regarding Material Risks in Crucial Areas

Current Period (31.12.2018)

Risk Classes(1) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Toplam

Domestic 63 29.978.759 - - - 2.833.339 - 36.234 ------7.037.706 39.886.101

European Union Member States ------

OECD Members(2) ------

Of-shore Banking Areas ------

USA, Canada ------

Other Countries ------

Associates, Subsidiaries and Jointly-Controlled Entities ------

Undistributed Assets/Liabilities(3) ------

Total 63 29.978.759 - - - 2.833.339 - 36.234 7.037.706 39.886.101

Previous Period (31.12.2017)

Risk Classes(1) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Toplam

Domestic 60 22.851.415 - - - 1.776.580 - 26.997 ------7.852.884 32.507.936

European Union Member States ------

OECD Members(2) ------

Of-shore Banking Areas ------

USA, Canada ------

Other Countries ------

Associates, Subsidiaries and Jointly-Controlled Entities ------

Undistributed Assets/Liabilities(3) ------

Total 60 22.851.415 - - - 1.776.580 - 26.997 7.852.884 32.507.936

1. Contingent and non-contingent receivables from central governments and central banks 11. Receivables considered high risk by the Board 2. Contingent and non-contingent receivables from regional or local governments 12. Securities with mortgage collateral 3. Contingent and non-contingent receivables from administrative units and non-commercial enterprises 13. Securitization positions 4. Contingent and non-contingent receivables from multilateral development banks 14. Short term receivables from banks and financial intermediaries and short term corporate receivables 5. Contingent and non-contingent receivables from international organizations 15. Investments as collective aid organization 6. Contingent and non-contingent receivables from banks and financial intermediaries 16. Other Receivables 7. Contingent and non-contingent corporate receivables 8. Contingent and non-contingent retail receivables 9. Contingent and non-contingent receivables with real estate collateral (1) Refers to the risk classes stipulated in the Regulation regarding the Measurement and Assessment of Capital Adequacy of Banks. 10. Non-performing receivables (2) EU countries, OECD countries other than USA and Canada (3) Assets and liabilities which cannot be distributed to regions on the basis of a consistent method 126 127

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

II. Explanations on credit risk (Continued) Table of Significant Risks in Important Regions: Risk profile according to sectors and other party risks

Current Period (31.12.2018) Risk Classes1)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 TP YP Toplam Agriculture - - - - Farming and Livestock Breeding ------Forestry ------Fishing ------Industry ------Mining and Quarries ------Manufacturing ------Electricity, Gas, Water ------Construction ------Services ------Wholesale and Retail Trade ------Hotel and Restaurant Service ------Transportation and Communica-tion ------Professional Services ------Education Services ------Self-Employed Services ------Training Services ------Medical and Social Services ------Other 63 29.978.759 - - - 2.833.339 - 36.234 ------7.037.706 34.259.224 5.626.877 39.886.101 Total(1) 63 29.978.759 - - - 2.833.339 - 36.234 ------7.037.706 34.259.224 5.626.877 39.886.101

Previous Period (31.12.2017) Risk Classes(1)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 TP YP Toplam Agriculture - - - - Farming and Livestock Breeding ------Forestry ------Fishing ------Industry ------Mining and Quarries ------Manufacturing ------Electricity, Gas, Water ------Construction ------Services ------Wholesale and Retail Trade ------Hotel and Restaurant Service ------Transportation and Communica-tion ------Professional Services ------Education Services ------Self-Employed Services ------Training Services ------Medical and Social Services ------Other 60 22.851.415 - - - 1.776.580 - 26.997 ------7.852.884 28.620.731 3.887.205 32.507.936 Toplam(1) 60 22.851.415 - - - 1.776.580 - 26.997 ------7.852.884 28.620.731 3.887.205 32.507.936

1. Contingent and non-contingent receivables from central governments and central banks 6. Contingent and non-contingent receivables from banks and financial intermediaries 12. Securities with mortgage collateral (1) Refers to the risk classes stipulated in the Regulation regarding the Measurement and 2. Contingent and non-contingent receivables from regional or local governments 7. Contingent and non-contingent corporate receivables 13. Securitization positions Assessment of Capital Adequacy of Banks. 3. Contingent and non-contingent receivables from administrative units and non-commercial 8. Contingent and non-contingent retail receivables 14. Short term receivables from banks and financial intermediaries and short term corporate enterprises 9. Contingent and non-contingent receivables with real estate collateral receivables 4. Contingent and non-contingent receivables from multilateral development banks 10. Non-performing receivables 15. Investments as collective aid organization 5. Contingent and non-contingent receivables from international organizations 11. Receivables considered high risk by the Board 16. Other Receivables 128 129

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

II. Explanations on credit risk (Continued) Risk amounts by risk weight

Breakdown of maturity bearing risks of remaining maturities The total amount of risk before and after the credit risk mitigation corresponding to each risk weight defined in Annex-1 of the Regulation on the Measurement and Evaluation of Banks’ capital adequacy and the amounts deducted from equity are given below. Current Period Time to Maturation

Risk Classes 1 month 1-3 month 3-6 month 6-12 month over 1 year Current Period (31.12.2018)

Contingent and Non-Contingent Receivables from Central Governments and Central Banks - - - - - Risk Weight %0 %10 %20 %50 %75 %100 %150 %200 %1250 Shareholder’s Equity Contingent and Non-Contingent Receivables from Regional or Local Governments 1.585.516 605.741 1.020.014 1.836.715 24.789.635

Contingent and Non-Contingent Receivables from Administrative Units and Non-Commercial Enterprises - - - - - 1 Amount before Loan Risk Reduction 1.164 - 2.712.861 - - 37.172.076 - - - 36.345

Contingent and Non-Contingent Receivables from Multilateral Development Banks - - - - - 2 Amount after Loan Risk Reduction* 1.164 - 2.712.861 - - 37.172.076 - - - 36.345 Contingent and Non-Contingent Receivables from International Organizations - - - - -

Contingent and Non-Contingent Receivables from Banks and Financial Intermediaries 2.698.956 - - - -

Contingent and Non-Contingent Corporate Receivables - - - - -

Contingent and Non-Contingent Retail Receivables 3.259 6.013 8.649 12.334 5.979 Önceki Dönem (31.12.2017)

Contingent and Non-Contingent Receivables with Real Estate Collateral - - - - - Risk Weight %0 %10 %20 %50 %75 %100 %150 %200 %1250 Shareholder’s Equity Non-Performing Receivables - - - - -

Receivables considered High Risk by the Board - - - - - 1 Amount before Loan Risk Reduction 2.040 - 1.739.858 - - 30.766.038 - - - 99.399

Securities with Mortgage Collateral - - - - - 2 Amount after Loan Risk Reduction* 2.040 - 1.739.858 - - 30.766.038 - - - 99.399 Securitization Positions - - - - -

Short Term Receivables from Banks and Financial Intermediaries and Short Term Corporate Receivables - - - - - (*) Our bank does not implement credit risk mitigation techniques as required by its credit guarantee structure.

Investments as Collective Aid Organization - - - - -

Other Receivables 67.672 61.588 93.644 197.972 3.221.382 Miscellaneous information according to key sectors or counterparty Grand Total 4.355.403 673.342 1.122.307 2.047.021 28.016.996 The Bank has the status of a development and investment bank. Its fields of operations are defined in the Bank’s governing law no. 6107 as “satisfying the financing need of special provincial authorities, municipalities and their affiliated organizations andlocal administrative Previous Period (31.12.2017) Time to Maturation associations of which only these may be members; develop projects concerning locally-provided commonservices for the people dwelling

Risk Classes 1 month 1-3 month 3-6 month 6-12 month over 1 year within the boundaries of such administrations; providing such administrations with consultancy services and assistance on urban projects

Contingent and Non-Contingent Receivables from Central Governments and Central Banks - - - - - of a technical nature and in the conduct of infrastructure and superstructure works ,and performing any and all development and invest-

Contingent and Non-Contingent Receivables from Regional or Local Governments 1.831.510 479.460 764.811 1.454.597 18.271.731 ment banking functions”. Within this framework, The Bank is not involved in banking activities oriented towards free market in institutional and commercial terms. The Bank, which consists mostly of project Loans, is not profit-oriented and supports social projects of local go- Contingent and Non-Contingent Receivables from Administrative Units and Non-Commercial Enterprises - - - - - vernments without regard to credibility. In the event that the repayments of the loans provided by the bank cannot be made at the time of Contingent and Non-Contingent Receivables from Multilateral Development Banks - - - - - return, principal instalment amount that cannot be collected is added to balance principal amount and it is capitalized at the end of each Contingent and Non-Contingent Receivables from International Organizations - - - - - month and extended to remained maturity so as to be redeemed. Uncollected interest installments are spread over the residual interest Contingent and Non-Contingent Receivables from Banks and Financial Intermediaries 1.701.396 - - - - without interest accruing by adding it over the residual interest sum. As it is understood from these explanations, there is no default in the Contingent and Non-Contingent Corporate Receivables - - - - - loans that are used and there is no possibility of any damage due to unpaid loan receivables at the Bank’s time. Contingent and Non-Contingent Retail Receivables 2.513 4.495 6.365 9.103 4.521

Contingent and Non-Contingent Receivables with Real Estate Collateral - - - - - Information on value adjustments and changes in loan provisions

Non-Performing Receivables - - - - - Under the provision that the requirement to set aside provisions made in the Banking Law no 5411 is not applicable to İller Bank as per Receivables considered High Risk by the Board - - - - - Article 13 (5) of the Law no. 6107 governing Iller Bank INC.., specific provisions set aside by the Bank pertain to the Bank’s receivables other Securities with Mortgage Collateral - - - - - than those arising from lending transactions that are in litigation. Securitization Positions - - - - - Risks involved in cyclical capital buffer calculation Short Term Receivables from Banks and Financial Intermediaries and Short Term Corporate Receivables - - - - - Investments as Collective Aid Organization - - - - - Within the scope of Regulation and sub-regulations on Capital Protection and Cyclical Capital Buffers published in the Official Gazette Other Receivables 62.092 38.961 42.598 dated November 5, 2013 and numbered 28812, there are no receivables from the private sector taken into account in the calculation of Grand Total 3.597.511 483.955 771.176 1.502.661 18.318.850 the bank-specific cyclical capital buffer. 130 131

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

Current Period – 31.12.2018 EURO US Dollar Other FX TOTAL

III. Explanations on currency risk Assets Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased, Precious Metals) and Balances - - - - The currency risk refers to the probability of suffering loss due to changes in exchange rates, with reference to the foreign currency assets with the Central Bank of Turkey and obligations the banks have. The Bank observes the provisions of the Regulation on the Calculation and Implementation of Foreign Banks 11.378 - 113.056 124.434 Currency Net General Position/Equity Standard Ratio by Banks on Consolidated and Non-Consolidated Basis in maintaining the relation Financial Assets at Fair Value through Profit or Loss - - - - and balance among foreign currency assets and liabilities in order to secure a foreign currency position that is in line with its shareholders’ Money Market Placements - - - - Financial Assets at Fair Value Through Other Comprehensive Income - - - - equity. Currency risk regarding the foreign currency loans extended by the World Bank and JICA to municipalities shall be borne by the Credits 1.406.881 - 1.058.468 2.465.349 municipalities, as per the agreements. Currency conversion losses/gains sustained on the portions of such lending that are used by the Subsidiaries, Affiliated Corporations and Jointly-Controlled Entities (Joint Ventures) - - - - Bank under the rubric of “Strengthening Institutional Capacity” are to be borne by the Bank. Asset and liability account items appearing at Financial Assets At Amortized Cost - - - - the ends of fiscal periods evaluated on the basis of the exchange rates announced by the Central Bank of Turkey (TCMB), and the exchange Derivative Financial Assets for Hedging - - - - rate P/L is calculated thereon. Tangible Fixed Assets - - - - Intangible Fixed Assets - - - - The primary goal of the currency risk policy is to keep Foreign Currency Net General Position/ Equity Standard Ratio within legal limits Other Assets - - 2.111 2.111 within the frame of the Bank’s financial standing, current economic developments and recent trends in the market, while observing pro- Total Assets 1.418.259 - 1.173.635 2.591.894 fit-ability and productivity. The Bank calculates and reports RMD for its foreign currency position on a daily basis, Limits concerning foreign Liabilities Bank Deposits - - - - currency risk are set and monitored within the framework of the “Risk and Authority Limits Application Methods” approved by the Board Foreign Currency Deposits - - - - of Directors. Money Market Funds - - - - Funds Provided From Other Financial Institutions 1.416.870 - 1.167.600 2.584.470 The chart below shows the Turkish lira-value of the current exchange rates (foreign currency buying rates) publicly announced by the TCMB Marketable Securities Issued - - - - on the Bank’s balance sheet date and during the five days preceding it: Miscellaneous Payables - - 4.057 4.057 Derivative Financial Liabilities for Hedging Purposes - - - - Other Liabilities 76 35 110 221 1 US Dollar 1 Euro 100 Japanese Yens Total Liabilities 1.416.946 35 1.171.767 2.588.748 Net Balance Sheet Position 1.313 (35) 1.868 3.146 Balance Sheet 28.12.2018 5,2609 6,0280 4,7547 Net Off-Balance Sheet Position - - - - Receivables on Derivative Financial Instruments - - - - Before the balance sheet date; Obligations on Derivative Financial Instruments - - - - Teller buying rate on 27.12.2018 5,2889 6,0245 4,7579 Non-Cash Loans* 44.306 7.795 - 52.101 Commitments* 4.324.655 - 1.641.109 5.965.764 Teller buying rate on 26.12.2018 5,2832 6,0185 4,7690 Previous Period – 31.12.2017 Teller buying rate on 25.12.2018 5,3034 6,0419 4,7973 Total Assets 1.148.069 - 543.736 1.691.805 Total Liabilities 1.148.003 10 542.469 Teller buying rate on 24.12.2018 5,2926 6,0291 4,7538 1.690.482 Net Balance Sheet Position 66 (10) 1.267 1.323 Teller buying rate on 21.12.2018 5,2746 6,0342 4,7311 Net Off-Balance Sheet Position - - - - Receivables on Derivative Financial Instruments - - - - 1 US Dollar 1 Euro 100 Japanese Yens Obligations on Derivative Financial Instruments - - - -

Simple arithmetic thirty-day average 5,3061 6,0386 4,7124 Non-Cash Loans* - 2.388 - 2.388 Commitments* 2.951.748 - 1.434.276 4.386.024

* There is no effect on net off-balance sheet position.

Currency risk sensitivity The chart below shows the Bank’s sensitivity to 10% changes in US Dollar, Euro, and other foreign currency exchange rates. The 10% margin used here also represents the estimated change in exchange rates, A negative value shows the loss that a 10% depreciation of the Turkish lira against the US dollar, euro or other foreign currencies would cause in the Bank’s pretax profit/loss or equity.

31.12.2018 31.12.2017 Income Statement Shareholders’ Equity(*) Income Statement Shareholders’ Equity(*) US Dollar (3,59 (3,5) (1,0) (1,0) EURO 131,3 131,3 6,6 6,6 Other currencies 186,8 186,8 126,7 126,7 Total 314,6 314,6 132,3 132,3

* Includes profit/loss effect. 132 133

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

IV. Explanations on interest rate risk

The interest rate risk refers to the probability that the Bank shall suffer loss due to its expo-sure to changes in interest rates regarding financial instruments. The interest rates are set by the Board of Directors, in consideration of the mission and vision of the bank as well as the prevailing conditions of the day, or by the Assets and Liabilities Committee, which sets the rates in any case at a level not less than the interest rates established by the Board of Directors. The interest rate risk caused by the banking accounts is calculated and monitored at the Bank, to see compliance with the limits established under the Risk Authority Limits Application Methods, as per the provisions of the “Regulation on the Assessment and Evaluation of Interest Rate Risk Caused by Banking Accounts Using the Standard Shock Method”. Furthermore, the assets and liabilities sensitive to interest rates are compared with reference to their maturity, and interest-rate-sensitive GAP analysis is applied. Assets, interest rate sensitivity of assets, liabilities and off-balance sheet items (remaining period to repricing dates) Assets, interest rate sensitivity of assets, liabilities and off-balance sheet items (remaining period to repricing dates)

Up to 1 1-3 3-12 5 years or Up to 1 1-3 3-12 5 years or Previous Period – 31.12.2017 1-5 year Interest(*) Total Current Period – 31.12.2018 1-5 year Interest(*) Total month months months more month months months more Assets Assets Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased) Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased) - - - - - 275 275 - - - - - 217 217 and Balances with the Central Bank of Turkey and Balances with the Central Bank of Turkey Banks 1.744.591 - - - - 34.599 1.779.190 Banks 2.698.956 - - - - 138.339 2.837.295 Fair Value Through Profit or Loss Financial Assets ------Fair Value Through Profit or Loss Financial Assets - - - - - 2.014 2.014 Money Market Placements ------Money Market Placements ------Financial Assets at Fair Value Through Other Comprehensive Income - - - - - 474 474 Financial Assets at Fair Value Through Other Comprehensive Income ------Loans Extended 1.824.391 476.007 2.202.958 9.192.451 8.703.307 10.844 22.409.958 Loans Extended 1.585.716 592.943 2.847.337 12.278.886 10.955.407 28.193 28.288.482 Appraised over the Redeemed Cost Financial Assets ------Appraised over the Redeemed Cost Financial Assets ------Other Assets - - - - - 798.792 798.792 Other Assets - - - - - 1.092.912 1.092.912 Total Assets 3.568.982 476.007 2.202.958 9.192.451 8.703.307 844.984 24.988.689 Total Assets 4.284.672 592.943 2.847.337 12.278.886 10.955.407 1.261.675 32.220.920

Liabilities Liabilities Bank Deposit ------Bank Deposit ------Other Deposit ------Other Deposit ------Money Market Funds ------Money Market Funds ------Miscellaneous Payables - - - - - 161.056 161.056 Miscellaneous Payables - 650.441 - - - 344.382 994.823 Marketable Securities Issued ------Marketable Securities Issued ------Funds Provided from other Financial Institutions - - 128.024 482.384 1.076.813 6.021.235 7.708.456 Funds Provided from other Financial Institutions 25.014 58.532 443.177 1.395.267 1.827.663 7.562.590 11.312.243 Other Liabilities 19.865 53.011 5.760 - - 17.040.541 17.119.177 Other Liabilities 464.019 170.601 44.431 - - 19.234.803 19.913.854 Total Liabilities 19.865 53.011 133.784 482.384 1.076.813 23.222.832 24.988.689 Total Liabilities 489.033 879.574 487.608 1.395.267 1.827.663 27.141.775 32.220.920 Long positions in the Balance Sheet 3.549.117 422.996 2.069.174 8.710.067 7.626.494 - 22.377.848 Long positions in the Balance Sheet 3.795.639 - 2.359.729 10.883.619 9.127.744 - 26.166.731 Short Position in balance sheet - - - - - (22.377.848) (22.377.848) Short Position in balance sheet - (286.631) - - - (25.880.100) (26.166.731) Off-Balance Sheet Long Position 6.808 7.413 35.277 369.455 60.344 - 479.297 Off-Balance Sheet Long Position 3.059 18.811 111.537 1.498.182 123.115 - 1.754.704 Off Balance Sheet Short Position ------Off Balance Sheet Short Position ------

Total Position 3.555.925 430.409 2.104.451 9.079.522 7.686.838 (22.377.848) 479.297 Total Position 3.798.698 (267.820) 2.471.266 12.381.801 9.250.859 (25.880.100) 1.754.704

(*) Accruals to ensure compliance with the balance sheet of assets and liabilities The total amount of accounts, deferred tax assets, fixed assets, other assets, equity total, provisions, other (*) Accruals to ensure compliance with the balance sheet of assets and liabilities The total amount of accounts, deferred tax assets, fixed assets, other assets, equity total, provisions, other liabilities and tax liabilities “no interest” in the column. liabilities and tax liabilities “no interest” in the column. 134 135

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

IV. Explanations on interest rate risk (Continued) VI. Explanations Regarding the Liquidity Risk Management and Liquidity Payment Ratio

Average interest rates applied to monetary financial instruments:% Liquidity risk refers to the risk of Bank failing to meet its payment obligations on a timely manner, due to a lack of cash inventory or cash Current Period - 31.12.2018 Euro US Dollar Yen TRL flow at a level or quality to meet cash outflows in full and on time, caused by an instability in cash flow of the Bank. The reasons of liquidity Assets inadequacy in banks are generally related to problems such as refinancing, late collections and unexpected withdrawal of funds. Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased) and Balances with the Central Bank of Turkey - - - - Banks - - - 18,72 Liquidity Risk in the Bank is managed in accordance with the Regulation on the Measurement and Assessment of Liquidity Adequacy of Fair Value Through Profit or Loss Financial Assets - - - - Banks published in the Official Gazette, dated 01 November 2006 and numbered 26333 and Regulation on the Calculation of Liquidity Money Market Placements - - - - Financial Assets at Fair Value Through Other Comprehensive Income - - - - Payment Ratio of Banks published in the Official Gazette, dated 21 March 2014 and numbered 28948, Regulation on the Internal Systems Loans Extended 1,58 - 1,22 12,03 and Internal Capital Adequacy Assessment Procedures published in the Official Gazette, dated 11 July 2014 and numbered 29057 and the Financial Assets At Amortized Cost - - - - Guide Regarding the Liquidity Risk Management published in the Official Gazette, dated 19 March 2015 and numbered 6241; and mo- Liabilities nitored with the forms prepared for the Liquidity Risk management under Risk Management Policies and Application Methods, Risk and Bank Deposit - - - - Other Deposit - - - - Authority Limits and Basel II standards. Money Market Funds - - - - Miscellaneous Payables - - - 24,90 Banking Directorate Treasury Management group operating under the Banking Services Directorate is responsible from the liquidity ma- Marketable Securities Issued - - - - nagement in Bank. Also Risk Management Directorate carries out internal liquidity assessment on a daily or a monthly basis. Funds Provided from other Financial Institutions 0,97 - 0,63 17,66 The primary objective is to place liquidity surplus in view of alternative returns and fulfilling the required liquidity with the most cost-ef- Previous Period - 31.12.2017 Euro US Dollar Yen TRL fective funds. Assets Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased) and Balances with the Central Bank of Turkey - - - - The Bank’s financial resources consist of interest earned on the statutorily mandated municipal allotments of general budget and tax Banks - - 0,10 13,20 Fair Value Through Profit or Loss Financial Assets - - - - revenues that are transferred to the Bank at the end of each month and are distributed to local governments by the evening of the tenth Money Market Placements - - - - day of the following month, of principal and interest collections on loans, and of cash injections from capital collections, liquidity disburse- Financial Assets at Fair Value Through Other Comprehensive Income - - - - ments consisting of credit extensions, tax and other legal obligation payments, and current payments. All of these are tracked by means of Loans Extended 1,57 - 0,81 7,70 Financial Assets At Amortized Cost - - - - weekly, monthly, and yearly reports. The Bank meets its liquidity needs by using medium- and long-term loans from Interbank free money Liabilities markets and other banks by providing funds from local governments which are partners in scope of Article 60, paragraph 4 of the Banking Bank Deposit - - - - Law.All of the credit the Bank secures from banks abroad is used to finance municipalities’ investments. Other Deposit - - - - Money Market Funds - - - - Bank was exempted, as a response to the written re- quest for exemption filed with BRSA, from the obligations regarding the Stress Miscellaneous Payables - - - - Testing and Internal Capital Adequacy Evaluation Procedure (ISEDES) reporting it has before the BRSA as per articles 43 and 48 of the Marketable Securities Issued - - - - Funds Provided from other Financial Institutions 1,57 - 0,81 - Regulation on the Internal Systems and Internal Capital Adequacy Assessment Procedures, applicable at the end of the year.

The Assets and Liabilities Committee was established through Iller Bank Board of Directors resolution nr. 3/28 dated 19.03.2014. The V. Explanations on the position risk of common stock committee is assigned the tasks of evaluating the Bank’s finances, portfolio, credit interests, and the developments in financial and capital Comparative markets, as well as other developments at the Bank and in other banks, with a view to establishing the policies regarding the management Share certificate investments (Current Period 31.12.2018) Balance Value Fair Value Market Valuei of the Bank’s assets and liabilities and related fund transactions, and making the decisions to be executed by relevant departments in order 1 Securities* 2.014 2.014 2.014 to manage the Bank’s balance sheet, as well as monitoring the implementation of the decisions taken. Traded on the Stock Exchange 2.014 2.014 2.014 2 Subsidiaries - - - The Bank’s “Liquidity Risk Management Emergency Plan procedure” has been implemented as an annex to the Iller Bank A.Ş emergency Traded on the Stock Exchange - - - 3 Subsidiaries - - - plan with the decision of the board of directors dated 23.06.2016 and numbered 21/585. The purpose of this procedure is to ensure that Traded on the Stock Exchange - - - the bank has a potential liquidity shortage.;

Comparative Share certificate investments (Previous Period 31.12.2017) To ensure timely identification of the possible crisis, Balance Value Fair Value Market Valuei 1 Acquired Investment Securities* 474 474 474 Identify the strategies and procedures necessary to manage risks, Traded on the Stock Exchange 474 474 474 In this context, taking the necessary measures to terminate the crisis as soon as possible, 2 Subsidiaries - - Traded on the Stock Exchange - - - To take care of the interests of the partners who fund the bank in the actions to be taken. 3 Affiliates - - - Traded on the Stock Exchange - - - If the early warning limits are excessed, related units inform the Vice Presidents to whom they report. After Vice Presidents inform the

* The financial assets available for sale of the Bank have a share and voting ratio of less than 10%. Niğbaş Niğde Beton Sanayi A.Ş. And Real Estate Real Estate Investment Trust Inc. General Manager, Active Passive Committee is gathered if it is deemed necessary by the General Manager. It can ask related units to take necessary precautions about the subject as a result of the committee assessments. 136 137

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

VI. Explanations Regarding the Liquidity Risk Management and Liquidity Payment Ratio (Continued)

Liquidity Payment Ratio

Consideration Rate Non-Applied Consideration Rate Consideration Rate Non-Applied Consideration Rate App-lied Total Current Period Total Value(*) Applied Total Value(*) Previous Period Total Value(*) Value(*) 31.12.2018 31.12.2017

TRL + FX FX TRL + FX FX TRL + FX FX TRL + FX FX

HIGH QUALITY LIQUIDITY ASSETS 263 - HIGH QUALITY LIQUIDITY ASSETS 277 -

1 High quality liquidity assets 263 - 263 - 1 High quality liquidity assets 277 - 277 -

CASH OUTFLOW CASH OUTFLOW

2 Natural person deposit and retail deposit - - - - 2 Natural person deposit and retail deposit - - - -

3 Deposit with stability - - - - 3 Deposit with stability - - - -

4 Deposit with low stability - - - - 4 Deposit with low stability - - - -

5 Unsecured debts other than natural person deposits and retail deposits 2.620.844 35.803 1.687.809 28.505 5 Unsecured debts other than natural person deposits and retail deposits 1.838.459 18.262 1.123.263 17.655

6 Operational deposit - - - - 6 Operational deposit - - - -

7 Non-operational deposit - - - - 7 Non-operational deposit - - - -

8 Other unsecured debts 2.620.844 35.803 1.687.809 28.505 8 Other unsecured debts 1.838.459 18.262 1.123.263 17.655

9 Secured debts - - 9 Secured debts - -

10 Other cash outflows - - - - 10 Other cash outflows - - - -

11 Derivative obligations and collateral completion obligations - - - - 11 Derivative obligations and collateral completion obligations - - - -

12 Debts from restructured financial instruments - - - - 12 Debts from restructured financial instruments - - - -

13 Payment commitments for debts to financial markets and other non-balance obligations - - - - 13 Payment commitments for debts to financial markets and other non-balance obligations - - - -

Other non-balance obligations that are revocable without any conditions and other obligations 14 - - - - Other non-balance obligations that are revocable without any conditions and other obligations based on the contract 14 based on the contract - - - -

15 Other non-balance debts that are irrevocable or revocable on a condition 13.094.527 6.224.280 1.188.563 479.940 15 Other non-balance debts that are irrevocable or revocable on a condition 15.727.560 4.393.300 1.482.467 335.760

16 TOTAL CASH OUTFLOW 2.876.372 508.445 16 TOTAL CASH OUTFLOW 2.605.730 353.415

CASH FLOW CASH FLOW

17 Secured Receivables - - - - 17 Secured Receivables - - - -

18 Unsecured Receivables 2.526.984 23.602 1.601.455 11.801 18 Unsecured Receivables 1.661.462 17.224 1.105.951 8.612

19 Other cash flow - - - - 19 Other cash flow - - - -

20 TOTAL CASH FLOW 2.526.984 23.602 1.601.455 11.801 20 TOTAL CASH FLOW 1.661.462 17.224 1.105.951 8.612

Maximum Applied Values Maximum Applied Values

21 TOTAL YKLV INVENTORY 263 - 21 TOTAL YKLV INVENTORY 277 -

22 TOTAL NET CASH OUTFLOW 719.093 127.111 22 TOTAL NET CASH OUTFLOW 651.433 88.354

23 LIQUIDITY PAYMENT RATIO(%) 0,04 - 23 LIQUIDITY PAYMENT RATIO(%) 0,04 -

* Average of consolidated liquidity payment ratio calculated for the last three months by calculating the simple monthly arithmetic mean * Average of consolidated liquidity payment ratio calculated for the last three months by calculating the simple monthly arithmetic mean

The lowest highest and average Liquidity Cover Ratio in the last three months of 2018 are shown in the table below. The lowest highest and average Liquidity Cover Ratio in the last three months of 2017 are shown in the table below.

Highest Date Lowest Date Average Highest Date Lowest Date Average

TRL+FX 0,06 09.11.2018 0,01 14.12.2018 0,04 TRL+FX 0,04 29.12.2017 0,01 22.12.2017 0,04 138 139

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

VI. Explanations Regarding the Liquidity Risk Management and Liquidity Payment Ratio (Continued) f. Information about other cash flow and cash outflow items thought to be related to liquidity profiles of banks, and which takes part in the calculation of liquidity payment ratio and not in the public disclosure template in the second paragraph: a. Important factors affecting the outcome of the liquidity coverage ratio and the change of the items taken into account in this ratio: All the items found in the liquidity payment ratio calculation are included in the calculation by being aggregated in the related table. Within this framework, there is no disclosure that took part in the calculation of the liquidity payment ratio and not in the public disclosure template. Banks’ Liquidity Coverage Ratio pursuant to paragraph 5 of Regulation 4 of article related to the calculation of the Banking Regulation and Supervision Board for the 12.12.2016 dated and 7123 numbered decision in accordance with the development and investment banks, Breakdown of assets and liabilities by remaining term consolidated and otherwise of non total, and foreign currency liquidity coverage ratio 0% until it was determined to be implemented, but Up to 1 1-3 3-12 5 years or Undistribu- themes available to be rate determining for another bank is concerned, it was decided to continue the drying rate of the reported. Current Period’s End (31.12.2018) Demand 1-5 year Total month months months more ted (*) The most important elements affecting the liquidity payment ratio are current cash in the banks tracked as unsecured receivables and fun- Assets ds provided by the foreign financing organizations and used by the local governments tracked as secured debts and miscellaneous payable Cash (Cash in Vault, Foreign Banknotes, Money in Transit, Cheques Purchased) and Balances with the 217 ------217 tracked as other unsecured debts. Increase in bank assets, especially after using the foreign funds with the return of the legal shares from Central Bank of Turkey General Budget and Tax Revenues that are transferred to the Bank at the end of each month and are distributed to local governments by Banks 138.339 2.698.956 - - - - - 2.837.295 the evening of the tenth day of the following month, does not affect the liquidity payment ratio. MD at Fair Value through Profit and Loss - 2.013 - - - - 1 2.014 Money Market Placements ------b. Items establishing high quality liquidity assets: Financial Assets at Fair Value Through Other ------Comprehensive Income High quality liquidity assets of the banks are comprising of the following items for calculating the Liquidity Payment Ratio. Loans Extended - 1.613.909 592.943 2.847.337 12.278.886 10.955.407 - 28.288.482

Cash and balances, accounts before the central banks form the Top Quality Liquidity Assets, while securities available for sale forms the Financial Assets At Amortized Cost ------Second Quality Liquidity Assets. Other Assets - 8.474 - 38.565 26.048 - 1.019.825 1.092.912 Total Assets 138.556 4.323.352 592.943 2.885.902 12.304.934 10.955.407 1.019.826 32.220.920 c. Items forming the fund resources and their concentration within all the funds: Liabilities The Bank does not receive deposits and operates under article 77 of the Banking Law numbered 5411. Bank only mediates the funds Bank Deposit** ------provided by the foreign financing organizations for local governments to use only. Other Deposit*** ------Funds Provided from other Financial Instituti-ons - 4.440.963 108532 668.177 4.266.908 1.827.663 - 11.312.243 In addition, the Communiqué on the Amendment to the General Communiqué on Public Treasury in the Official Gazette dated 28.02.2018 Money Market Funds ------and numbered 30346 has been published and Article 5 of the communique 30 (5) İller Bankası A.Ş. The municipalities and special provincial Marketable Securities Issued ------administrations that have partnerships can evaluate their financial resources in Iller Bank under the conditions set forth in Article 6 of this Miscellaneous Payables 92.960 10.938 650.737 195.987 44.201 - - 994.823 Communiqué. Under this article, the Bank provides funds from its partner municipalities and special provincial administrations. Other Liabilities - 550.093 407.635 183.404 86.812 105.585 18.580.325 19.913.854 ç. Information about the cash outflow caused by derivative transactions and transactions with the possibility of completion: Total Liabilities 92.960 5.001.994 1.166.904 1.047.568 4.397.921 1.933.248 18.580.325 32.220.920

The Bank which do not receive deposits and operates under article 77 of the Banking Law numbered 5411, has no derivative transactions. Liquidity Deficit 45.596 (678.642) (573.961) 1.838.334 7.907.013 9.022.159 (17.560.499) - Net Off-Balance Sheet Position ------d. Concentration limits regarding the bonds and fund resources based on the other party and the product: Receivables on Derivative Financial Instru-ments ------Bank was exempted, as a response to the written re- quest for exemption filed with BRSA, from the obligations regarding the Stress Obligations on Derivative Financial Instru-ments ------Testing and Internal Capital Adequacy Evaluation Procedure (ISEDES) reporting it has before the BRSA as per articles 43 and 48 of the Non-Cash Loans 59.976 3.059 18.811 111.537 1.498.182 63.139 - 1.754.704

Regulation on the Internal Systems and Internal Capital Adequacy Assessment Procedures, applicable at the end of the year. Previous Period (31.12.2017) Total Assets 32.264 3.631.075 476.007 2.241.919 9.235.049 8.703.307 669.068 24.988.689 Bank does not carry out analytic loan valuation. However, credits are categorized as collateral, restructured etc. and concentration, col- Total Liabilities 37.391 3.887.272 157.115 595.519 3.122.480 1.176.118 16.012.794 24.988.689 lateral, return and monitoring of credits are submitted to top management in the Risk Evaluation Reports prepared on monthly basis in Net Liquidity Deficit (5.127) (256.197) 318.892 1.646.400 6.112.569 7.527.189 (15.343.726) - terms of credit risk. Net Off-Balance Sheet Position ------e. Liquidity at risk and funding need on the basis of bank itself, its branch abroad and its consolidated partnerships when Receivables on Derivative Financial Instru-ments ------the operational and legal factors preventing the liquidity transfer are taken into consideration: Obligations on Derivative Financial Instru-ments ------Non-cash loans 49.306 6.808 7.413 35.277 369.455 11.038 - 479.297 Bank does not have branches abroad or consolidated partnerships. (*)The accounts included here consist of balance sheet items such as fixed assets, equity stakes, goods on hand, prepaid expenses, nonperforming receivables, and other asset accounts and equity items which are necessary for the conduct of banking activities and whose conversion to cash in a short time is not possible. (**)Funds received from the Banks via Participation Accounts and Private Current Accounts for Participation Banks. (***)Other Private Current Accounts and Participation Accounts for Participation Banks.) 140 141

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

VII. Explanations about Financial Leverage Ratio VIII. Representation of Financial Assets and Liabilities at Fair Value

The table concerning to leverage ratio calculated in accordance with ‘ Regulation About Measuring and Evaluating the Leverage Levels of Banks’ published in 5th November 2013 dated and 28812 numbered Official Gazette is as below. The leverage ratio calculated based on Book Value Fair Value the arithmetical average of the values of the Bank as of the end of the month in the last three months period as of the balance sheet date Current Period Previous period Current Period Previous period is 40,66% (31 December 2017: 40,09%). (31.12.2018) (31.12.2017) (31.12.2018) (31.12.2017)

The reason of the difference between current period and previous period leverage rates is resulted from the increase in loan commitments Financial Assets 31.127.791 24.189.622 31.127.791 24.189.622 within off-balance sheet transactions. Money Market - - - -

Banks 2.837.295 1.779.190 2.837.295 1.779.190 Current Period (*) Previous period (*) Securities Available for Sale Financial Assets 2.014 474 2.014 474 (31.12.2018) (31.12.2017)

Held-to-Maturity Investments - - - - In-Balance Sheet Assets Loans 28.288.482 22.409.958 28.288.482 22.409.958 1 In-Balance Sheet Assets (Except Derivatives and Credit Derivatives, including gurantees) 30.513.910 23.991.909 Financial Liabilities 12.986.118 7.948.148 12.986.118 7.948.148 2 (Assets taken from Primary Capital) - - Bank Deposits - - - - 3 Total Risk amount concerning to In-Balance Sheet Assets (Total of 1st and 2nd Lıne) 30.513.910 23.991.909 Other Deposits - - - -

Funds Borrowed From Other Financial Financial Derivate Instruments and Credit Derivatives 11.991.295 7.787.092 11.991.295 7.787.092 Institutions

4 Financial Derivate Instruments and Credit Derivatives - - Securities Issued - - - -

5 Potential Credit Risk amount of Financial Derivative Instruments and Credit Derivatives - - Sundry 994.823 161.056 994.823 161.056

6 Total Risk Amount of Financial Derivative Instruments and Credit Derivatives (total of 4th and 5th lines) - -

Security and Commodities Collateral Financial Transactions IX. Explanations on transactions entered on behalf and account of others; fiduciary transactions Risk amount of Security and Commodities Collateral Financial Transactions of Securiza-tion and Commodities collateral 7 - - Financial Transactions (except in-Balance sheet) Iller Bank engages in no trading or custody activities on behalf and account of others nor does it provide consultancy services therefor. The

8 Risk Amount derived from Financial Intermediation Transactions - - Bank is not engaged in fiduciary transaction agreements. However, the Bank does deduct outstanding obligations owed by municipalities and special provincial authorities to tax offices, Social Security Institution, Civil Servants Pension Fund and various agencies falling under 9 Total Risk Amount of Securization and Commodities collateral Financial Transactions (total of 7th and 8th lines) - - the Law no.6183 on the Procedure for Collection of Public Receivables, tax obligations falling under the Law no 4811, and their reconciled

Off-Balance sheet Transactions obligations falling under the Law no 5216 on Metropolitan Municipalities and Law no 5393 on Municipalities from the municipal allot- ments, which are distributed by the Bank pursuant to Article 7 of Law no.5779,and it pays these amounts to the authorities concerned. 10 Gross Nominal amount of Off-Balance sheet Transactions 13.628.892 15.684.124

11 Correction amount resulted from the multiplication with the rates of conversion to credit) - -

12 Total Risk Amount of off-Balance Sheet Transactions (total of 10th and 11th lines) 13.628.892 15.684.124

Capital and Total Risk

13 Primary Capital 18.070.532 15.905.587

14 Total Risk amount (Total of 3rd, 6th, 9th and 12th lines) 44.142.802 39.676.033

Leverage Rate

15 Leverage Rate 40.95 40,09

(*) The three-month averages of the amounts in the table above are taken. 142 143

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management 1.a. Overview of risk weighted amounts

On October 23, 2015 published in the Official Gazette No. 29 511 “Banks will be made public on Risk Management Disclosures State- Minimum capital Risk weighted amounts ments” and related notes prepared in accordance with explanations are provided in this section. liabi-lity In- Balance sheet assets Current Period Previous Period Current Period 1. The Bank’s risk management approach (31.12.2018) (31.12.2017)

Risk management in the bank; Based on the provisions of the Banking Law No. 5411, the regulations, communiqués, guidelines and other 1 Loan Risk ( except loan risj of counter party) 37.714.647 31.114.009 3.017.172 legislation issued for the purpose of enforcing this law and the provisions of these legislation, taking into consideration the exemptions 2 Standard approach 37.714.647 31.114.009 3.017.172 stated in the Banking Law No. 5411 and the exemptions stated in the Bank Act No. 6107, In accordance with the provisions of the internal legislation issued by the. 3 Internal rating-based approach - - -

4 Loan risk of counter party The risks that the Bank may incur as a result of its strategies and activities are determined by the strategies, policies, limits and practices - - - determined to monitor, control and, where necessary, change the risk / return structure of the Bank’s future cash flows, Are monitored, 5 Standard approach for loan risk of counter party - - - monitored and controlled by means of procedures. It establishes written policy and implementation procedures to manage all risks arising 6 Internal model method - - - from the Bank’s operations. The Board of Directors or the relevant internal systems officer regularly assesses their adequacy and makes Simple risk weighting approach or Stock position in banking account in the internal model 7 - - - any necessary changes. approach

In this context, it is the basic principle to ensure that the risks to be taken are defined and manageable risks. In addition, it is possible to 8 Investments made to Loan and Dormitories Institution- content management - - - measure the current and future potential effects of the risks involved, as well as the risk measurement and reporting techniques. The Bank 9 Investments made to Loan and Dormitories Institution-prospectus method - - - establishes written limits within the framework of Article 5 of the “Regulation on Internal Systems of Banks and Internal Capital Adequacy Assessment Process” issued by the BRSA for the risks arising from its activities and these limits are approved by the Board of Directors 10 Investments made to Loan and Dormitories Institution- 1250 % of risk weight method - - - and are regularly audited. 11 Settlement risk - - -

The Bank is required to calculate the requirements of Articles 43 and 48 of the “Internal Systems and Internal Capital Adequacy Assess- 12 Securitization positions in banking accounts - - - ment Process of the Banks” and to submit the BRSA’s report on the Stress Test and Internal Capital Adequacy Assessment Process (ISE- 13 IDD approach based on rating - - - DES) Has been exempted from the written request of the student. 14 IDD auditing authority formula approach - - -

15 Standard simplified supervisory authority formula approach - - -

16 Market risk - - -

17 Standard approach - - -

18 Internal model approaches - - -

19 Operational risk 2.532.689 2.164.917 202.615

20 Basic indicator approach 2.532.689 2.164.917 202.615

21 Standard approach - - -

22 Advanced measurement approach - - -

23 Amounts below the discount thresholds from equity (subject to 250% risk weight) - - -

24 Lowest value adjustments - - -

25 Total (1+4+7+8+9+10+11+12+16+19+23+24) 40.247.336 33.278.926 3.219.787 144 145

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) X. Explanations on risk management (Continued)

2. Links between financial statements and risk amounts 2. Links between financial statements and risk amounts a. Differences between accounting consolidation and legal consolidation scope and matching a. Differences between accounting consolidation and legal consolidation scope and matching

Valued amount of items according to TMS Valued amount of items according to TMS In Financial Table In Financial Table Current Period reported According Previous Period reported According Opponent Movable Market Capital Obligation to (31.12.2018) to Tms Valued (31.12.2017) to Tms Valued Opponent Movable Market Capital Obligation to Credity Risk Credit Risk securitiation the risk Nonsense Or from Amount Amount Credity Risk Credit Risk securitiation the risk Nonsense Or from capital Subject positions subject (*) capital Downloads Subject positions subject (*) Downloads Assets Assets Financial Assets (Net) 2.839.526 2.839.526 - - - - Cash and Cash Equivalents 2.837.512 2.837.512 - - - - Cash assets and Central Bank 275 275 - - - - Cash assets and Central Bank 217 217 - - - - Financial assets available for purchase and sale ------Banks 2.837.295 2.837.295 - - - - Financial Assets at Fair Value through Profit or Loss ------Receivables from Money market ------Banks 1.779.190 1.779.190 - - - - Financial Assets at Fair Value through Profit or Loss 2.014 2.014 - - - - Receivables from Money market ------Financial Assets at Fair Value Through Other Compre-hensive ------Income Financial assets available for sale (net 474 474 - - - - Financial assets measured at amortized cost ------Loans and receivables 22.409.958 22.409.958 - - - - Derivative Financial Assets ------Factoring receivables ------Credits (Net) 28.291.721 28.291.721 - - - - Investments held to maturity (net) ------Credits 28.288.482 28.288.482 - - - - Subsidiaries (net) ------Leasing receivables (net) 3.239 3.239 - - - - Affiliates (net) ------Factoring receivables ------Jointly controlled entities (Joint ventures)(net) ------Frozen Receivables ------Leasing receivables (net) 3.217 3.217 - - - - Special Provisions (-) ------Tangible Assets held for sale and discontinued operations (net) ------Derivative financial assets for hedging against risks (net) ------Partnership Investments ------Tangible fixed assets (net) 144.779 144.779 - - - - Subsidiaries (net) ------Intangible fixed assets (net) 2.516 - - - - 2.516 Affiliates (net) ------Real estate for investment purpose (net) 295.425 295.425 - - - - Jointly controlled entities (Joint ventures)(net) ------Tax existence 96.883 - - - - 96.883 Tangible fixed assets (net) 197.328 197.328 - - - - Tangible Assets held for sale and discontinued operations (net) ------Intangible fixed assets (net) 1.176 - - - - 1.176 Other assets 255.972 255.972 - - - - Real estate for investment purpose (net) 673.415 673.415 - - - - Total assets 24.988.689 24.889.290 - - - 99.399 Current Tax Asset ------Deferred Tax Asset 35.169 - - - - 35.169 Liabilities Other Assets 182.585 182.585 - - - - Deposit ------Total assets 32.220.920 32.184.575 - - - 36.345 Derivative financial liabilities held for trading ------Liabilities Loans received 1.687.221 - - - - - Deposit ------Debts to money markets ------Loans received 3.749.653 - - - - - Issued securities ------Debts to money markets ------Funds 6.099.871 - - - - - Securities Issued (Net) ------Miscellaneous debts 161.056 - - - - - Funds 8.241.642 - - - - - Financial Assets at Fair Value through Profit or Loss ------Other foreign sources 412.354 - - - - - Derivative Financial Liabilities ------Factoring receivables ------Factoring Liabilities ------Debts from leasing operations ------Debts from leasing operations ------Derivative financial liabilities for hedging purposes ------Provisions 183.829 - - - - - Provisions 486.206 - - - - - Current Tax Liability 144.077 - - - - - Tax liability 129.187 - - - - - Liabilities for assets held for sale and discontinued operati-ons ------Liabilities for assets held for sale and discontinued operati-ons (net) ------(net) Capital-similar loans ------Capital-similar loans ------Other Liabilities 1.321.394 - - - - - Shareholder’s equities 16.012.794 - - - - - Equity 18.580.325 - - - - - Total Liabilities 32.220.920 - - - - - Total liabilities 24.988.689 - - - - - 146 147

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) 3. Loan Risk Explanations

2. Links between financial statements and risk amounts (Continued) a. Issues to be disclosed to the public regarding loan risk b. The main sources of the differences between the risk amounts and the amounts assessed in accordance with TMS in a.1. General qualitative information on loan risk the financial statements Loan risk is measured as described in the BRSA Regulation on Measurement and Assessment of Banks’ Capital Adequacy dated 23 Octo- ber 2015 . This approach corresponds to the Simplified Standard Method in Basel II documents. Movable securitization Opponent Credit Current Period (31.12.2018) Total Credit Risk Market Risky positions Risk Subject In calculations it is essential to consider the guarantees Basel II has adopted as acceptable in the reduction of risk. There is no risk-redu- cing effect of other guarantees. There are no guarantees that can be valued within the scope of Basel II criteria in the Bank. The Basel II Assets valued under legal consolidation in accordance with TMS (as in template B1 32.220.920 32.184.575 standard method is used to calculate the bank’s loan risk weighted asset amount, in which case transactions are carried out in accordance The amounts valued pursuant to TMS of obligations under legal consolidation (as in 32.220.920 - - - - template B1) with the initiative of the national authority, the BRSA.

Total net amount under legal consolidation - 32.184.575 - - - There is no analytical loan evaluation in the Bank. However; loans are divided into different groups such as guaranteed ones, structured Off-balance sheet amount 13.648.347 7.701.526 - - - ones and etc.; the concentration guarantees, returns and follow-ups of loans are submitted by Risk Management Department to Units

Valuation differences - - - - - in charge of Risk Formation and Follow up together with the Board of Directors and Executive Management on Risk Evaluation Reports prepared periodically in the periods determined by Risk Management Department Regulations according to Articles 37 and 45 of the Re- Differences arising from different netting rules (other than those set out in line 2 - - - - - gulations. Particular attention is given to loan concentration reporting and this is monitored periodically by grouping the loans according to Differences arising from consideration of provisions - - - - - different criteria. The Bank can make decisions according to these concentrations when necessary. Differences arising from the applications of the Institution - - - - - The authority to open credits in the bank belongs to the Board of Directors. The Board of Directors may transfer the authority to open … - - - - - loans to the Loan Committee and / or the General Directorate. The written recommendation of the General Directorate is required by the Risk amounts - 39.886.101 - - - Board of Directors at the opening of loans or transfer of authority. The Board of Directors establishes loan policies and macro-level limits, establishes policies for loan opening, approval and other administrative principles. (*) Risk amounts after credit conversion rate are given before Credit Reduction. Regarding all Local Authorities in the demand for loan from the bank, it is decided by the authorized bodies of the Bank whether or not to

Movable securitization Opponent Credit enter the loan relation according to the outcome of the loan evaluation methods and principles, even if the requested loan varies according Previous Period (31.12.2017) Total Credit Risk Market Risky positions Risk Subject to the type and the demand. The Board of Directors is authorized to determine the credit risk limits by considering the counterparty risk. Loan transactions are carried out by the Board of Directors, the Loan Committee and / or the General Directorate. The General Directorate Assets valued under legal consolidation in accordance with TMS (as in template B1 24.988.689 24.889.290 may also exercise the authority to open credits transferred to it, through other units affiliated with it or through regional directorates. In The amounts valued pursuant to TMS of obligations under legal consolidation (as in 24.988.689 - - - - determining the loan limit for a borrower, the Board of Directors may transfer loan opening authority to the Loan Committee at a maximum template B1) of 10% of its own equities and of 1% to the General Directorate. Total net amount under legal consolidation - 24.889.290 - - -

Off-balance sheet amount 14.757.994 7.618.646 - - - Portfolio-based returns of the loans provided and their performances are monitored by the Risk Management Department. Risk manage- ment activities are carried out by the Risk Management Department, such as the introduction of new limits for the measurement of loan Valuation differences - - - - - risk, monitoring, analysis and prevention of concentration Differences arising from different netting rules (other than those set out in line 2 - - - - - In the context of loan risk measurement, information on the subjects to be monitored on the basis of local government is aggregated and Differences arising from consideration of provisions - - - - - the concentration on the loans is followed by making the analysis suitable. Concentration analyzes are used by the Senior Management to Differences arising from the applications of the Institution - - - - - decide on the structure of the loans to be given in the following periods. The objective of loan risk management is to optimize the risk-ad- … - - - - - justed income of the bank by managing the risks that the bank may be exposed to, within the appropriate parameters, in accordance with

Risk amounts - 32.507.936 - - - the relevant legislation. Loan risk management is not under the responsibility of a single department.

(*) Risk amounts after credit conversion rate are given before Credit Reduction. Regular audits and supervisions are carried out to ensure that loan processes are maintained in accordance with the bank’s loan policies and procedures, that the loans are issued within the framework of the procedures and principles set by the board of directors, and that the c. Explanations on the differences between the amounts valued and the risk amounts in accordance with TMS terms, amounts and qualifications of the loan are accurately reported to senior management. Activities carried out by the units within the internal systems are used as a means to identify weaknesses in loan risk management processes, policies and procedures and to identify The difference between the amounts assessed in accordance with TMS and the risk amounts subject to Loan risk arises from intangible assets that are not subject to Loan risk and deferred tax assets. The difference between the off-balance sheet amounts and the risk transactions that are contrary to such limits, policies and procedures. As a result of the reviews, the matters identified are shared regularly amounts subject to Loan risk arises from the application of the Loan conversion ratios to off-balance sheet amounts in accordance with with senior management and audit committee. the Regulation on Measurement and Assessment of Capital Adequacy of Banks. 148 149

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) a.2. Loan quality of assets

3. Loan Risk Explanations (Continued) a b c d a. Issues to be disclosed to the public regarding loan risk (Continued) Current Period (31.12.2018) Defaulting Non-defaulting a.1. General qualitative information on loan risk Continued) Provisions / Depreciation Net value de- Gross amount valued as per and Decrease in value crease (a+b-c) TMS available in Financial Tables Board of Directors; loan risk management is ultimately the responsibility of the Board of Directors. This responsibility is to monitor the effectiveness of the loan risk management system, to determine loan risk management policies and implementation procedures by taking 1 Loans - 28.288.482 - 28.288.482 risk management strategies as a basis, to determine risk appetite, to assign risk limits, to ensure that credit risk management policy and 2 Borrowing Instruments - - - - implementation procedures are followed and adhered to, to ensure that risks are understood and adequately assessed before an action is entered, to participate in the process of designing, selecting, implementing and approving loan risk measurement models. 3 Off-Balance Sheet Receivab-les - 13.648.347 - 13.648.347

Audit Committee’s duty on credit risk management so as to receive and evaluate the opinions and recommendations of the Senior Ma- 4 Total - 41.936.829 - 41.936.829 nagement regarding loan risk management systems, to evaluate whether there is any necessary infrastructure to manage the loan risk effectively and to take the necessary precautions.

General Manager is the highest authorized authority of the Bank after the Board of Directors among the lenders authorized by the Bank a b c d and approves the loan within the framework of the authorization of the Board of Directors in accordance with the provisions of the Bank Previous Period (31.12.2017) Defaulting Non-defaulting Loan Policy. The senior management is responsible for the implementation of the loan risk strategy and policy approved by the Board of Provisions / Depreciation Net value de- and Decrease in value crease (a+b-c) Directors and the development of policies and procedures for the identification, measurement, monitoring and control of the loan risk. Gross amount valued as per TMS available in Financial Tables

The Risk Management Department is responsible for implementing the loan risk management policies approved by the Board of Directors 1 Loans - 22.409.958 - 22.409.958 in relation to loan risk; for identification, measurement and reporting of loan risk; for ensuring that these risks are coordinated among the various parts of the bank that are exposed to loan risk. A suitable environment is created for the processing of the loan function in a healthy 2 Borrowing Instruments - - - - and efficient manner. Adequate staff and software are provided, authorities, roles, limits are clearly defined and necessary controls are 3 Off-Balance Sheet Receivab-les - 14.757.994 - 14.757.994 established. Loan risk is measured, analyzed and reported periodically. 4 Total - 37.167.952 - 37.162.957 In order to determine the maximum exposure to a loan relationship, the loans are combined and monitored.

The country, sector, borrower / counterparty, product, concentration, risk group and individual based loan limits and loan limits specified in a.3. Changes in stock of defaulting receivables and borrowing instruments the loan policies are recorded in information systems; if these limits and boundaries are approached, information systems are provided to produce stimulus information and timely reporting of overrights is provided, including those relating to exceptional operations. Information The Bank has the status of a development and investment bank. Its fields of operations are defined in the Bank’s governing law no. 6107 systems are structured flexibly so that intra-bank and legal reporting can be done at the desired level and speed. Manual practices are as “satisfying the financing need of special provincial authorities, municipalities and their affiliated organizations andlocal administrative avoided as much as possible. associations of which only these may be members; develop projects concerning locally-provided commonservices for the people dwelling within the boundaries of such administrations; providing such administrations with consultancy services and assistance on urban projects Audit of loan risk refers to the independent monitoring of the nature of the loans and the compliance of the loaning process with the of a technical nature and in the conduct of infrastructure and superstructure works and performing any and all development and invest- Bank’s policy and implementation principles through legal regulations and the assessment of the adequacy of loans and other receivable ment banking functions”. Within this framework, the Bank is not involved in banking activities oriented towards free market in instituti- provisions. onal and commercial terms. The Bank, which consists mostly of project loans, is not profit-oriented and supports social projects of local The loan risk control and evaluation process consists of the steps of the quality and trend of the loan portfolio, the effectiveness of the governments without regard to credibility. In paragraph 5 of Article 13 of Banking Law No. 6107, it has been decided that the obligation overall risk management and processes, whether timely action is made for retrograding loans, the management of the problematic loans, to allocate provision for loans and other receivables will not apply to our Bank. In the event that the repayments of the loans provided by informing the Bank’s management and the Board of Directors and the measures to be taken. the bank cannot be made at the time of return, principal instalment amount that cannot be collected is added to balance principal amount and it is capitalized at the end of each month and extended to remained maturity so as to be redeemed. Uncollected interest installments The loaning process is monitored continuously by the loan allocation authority and bodies. In addition to the supervision of the loaning are spread over the residual interest without interest accruing by adding it over the residual interest sum. As it is understood from these process, audits based on the Borrower Local Administration and Regional Directorate are also carried out in the Internal Audit System. The explanations, there is no default in the loans that are used and there is no possibility of any damage due to unpaid loan receivables at the Risk Management Department monitors and evaluates the loan risk on a portfolio basis. Loan risk audit performed in the Internal Audit Bank’s time. System is determined according to the annual audit plans determined by the Board of Directors. 150 151

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) Credits borrowed by the bank are given by the shares of the local governments distributed by the Bank and some of the municipalities as collateral. For the other receivables of the Bank, the proceeds from the legal remedies are paid, and from time to time, the General 3. Loan Risk Explanations (Continued) Assembly is abandoned within the framework of the Bank’s Law taking into account the state of the debtor and the costs to be collected. a.4. Additional disclosures about the loan quality of assets b. Credit Risks Reduction Techniques

Under the provision that the requirement to set aside provisions made in the Banking Law no 5411 is not applicable to İller Bank as per Drinking water, rent, terminal, parking lot, port and other operating income of the local governments that want to use credit in the current Article 13 (5) of the Law no. 6107 governing Iller Bank INC.., specific provisions set aside by the Bank pertain to the Bank’s receivables other situation in the bank are taken as collateral and credit is provided for these guarantees. In this application, the bank borrows the local than those arising from lending transactions that are in litigation. governments that use credits and makes payments to the contractor firms on the basis of the project, and the revenues related to the guarantees are collected in an account and pledged by the pledge contract on the account. Distribution of receivables according to geographical regions* This structure does not comply with the collateral types in the Basel II criteria, although the bank has a quality collateral structure. Accor- Current Period Previous Period ding to the legislation of the Bank, mortgage can be used as collateral. In practice, however, mortgage is not usually taken as a guarantee. Total Total In the event that the counterparty credit risk reduction in the bank is utilized, the calculations will be verified to comply with the principles Domestic 30.043.186 22.889.255 and procedures for credit risk mitigation before the acceptance of the collateral effect. USA, Canada - -

EU Countries - -

OECD Countries - -

Other Countries - -

Total 30.043.186 22.889.255

* The distribution of cash and non-cash loans according to geographical area is given.

Sectoral Distribution of Receivables*

Current Period Previous Period

Total Total

Agriculture - -

Farming and Livestock Breeding - -

Forestry - -

Fishing - -

Industry - -

Mining and Quarries - -

Mnaufacturing Industry - -

Electricity, Gas, Water - -

Construction - -

Services - -

Wholesale and Retail Trade - -

Hote and Restaurant Service - -

Transportation and Communication - -

Financial Institutions - -

Real estate and leasing services - -

Self-employed services - -

Educational services - -

Medical and Social Services - -

Other 30.043.186 22.889.255

Total 30.043.186 22.889.255

* The distribution of cash and non-cash loans according to geographical area is given. 152 153

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) c.3. Standard Approach: Receivables based on risk classes and risk weights

Current Period (31.12.2018) a b c d e f g h i j 3. Loan Risk Explanations (Continued) The ones Total Risk guarantee Ot- Amount Risk classes / Risk weight 0% 10% 20% with 50 % of 75% 100% 150% 200% c. Credit risk if standard approach is used hers (After kdo real estate and Kra) c.1. Qualitative disclosures related to ratings ratings of banks using the standard approach to credit risk mortga-ge 1 Receivables from Central Governments and Central Banks 63 ------63 The Bank does not have any credit rating transactions with its customers and local governments which are also partners. 2 Receivables from Regional or Local Governments - - - - - 29.978.759 - - - 29.978.759 Receivables from Administrative Units and Non-Commercial 3 ------c.2. Standard Approach - Exposure to loan risk and loan risk decrease effects Enterprises Loan Conversion Rate and Loan Conversion Rate and 4 Receivables from Multilateral Development Banks ------Risk Weighted Amount and Risk Current Period (31.12.2018) Receivable Amount Before Loan Receivable Amount After Loan Risk Weighted Amount of Density 5 Receivables from International Organizations ------Risk Deduction Deduction 6 Receivables from Banks and Financial Intermediaries - - 2.708.905 - - 124.434 - - - 2.833.339 Balance Risk Weighted Balance Sheet Off Balance Off Balance Risk Weigh- Risk classes Sheet Amount of 7 Corporate Receivables ------Amount Sheet Amount Sheet Amount ted Amount Amount Density 8 Retail receivables - - - - - 36.234 - - - 36.234 Receivables from Central Governments and Central Banks 63 - 63 - - - Receivables guaranteed with mortgage of real estate for 9 ------residence purpose Receivables from Regional or Local Governments 28.224.055 1.754.704 28.224.055 1.754.704 29.978.759 %100 Receivables guaranteed with mortgage of real estate for 10 ------Receivables from Administrative Units and Non-Commercial Enterprises ------commercial purpose Receivables from Multilateral Development Banks ------11 Non-performing receivables ------Receivables from International Organizations ------12 Receivables considered High Risk by the Board ------Receivables from Banks and Financial Intermediaries 2.833.339 - 2.833.339 - 666.215 %23,51 Corporate Receivables ------13 Securities with Mortgage guarantee ------Retail receivables 36.234 - 36.234 - 36.234 %100 Short Term Receivables from Banks and Financial 14 ------Receivables guaranteed with mortgage of real estate for residen-ce purpose ------Intermediaries and Short Term Corporate Receivables Receivables guaranteed with mortgage of real estate for com-mercial purpose ------15 Investments as Collective Aid Organization ------Non-performing receivables ------16 Other Receivables 1.101 - 3.956 - - 7.032.649 - - - 7.037.706 Receivables considered High Risk by the Board ------17 Share certificate investments ------Securities with Mortgage guarantee ------Short Term Receivables from Banks and Financial Intermediaries and Short Term 18 Total 1.164 - 2.712.861 - - 37.172.076 - - - 39.886.101 ------Corporate Receivables Investments as Collective Aid Organization ------Previous Period (31.12.2017) a b c d e f g h i j Other Receivables 1.090.884 11.893.643 1.090.884 5.946.822 7.033.440 %99,93 The ones Total Risk Share certificate investments guarantee Ot- Amount Total 32.184.575 13.648.347 32.184.575 7.701.526 37.714.648 %94,56 Risk classes / Risk weight 0% 10% 20% with 50 % of 75% 100% 150% 200% hers (After kdo real estate and Kra) Loan Conversion Rate and Loan Conversion Rate and mortga-ge Risk Weighted Amount and Risk Previous Period (31.12.2017) Receivable Amount Before Loan Receivable Amount After Loan Risk 1 Receivables from Central Governments and Central Banks 60 ------60 Weighted Amount of Density Risk Deduction Deduction 2 Receivables from Regional or Local Governments - - - - - 22.851.415 - - - 22.851.415 Balance Risk Weighted Balance Sheet Off Balance Off Balance Risk Weigh- Receivables from Administrative Units and Non-Commercial Risk classes Sheet Amount of 3 ------Amount Sheet Amount Sheet Amount ted Amount Enterprises Amount Density 4 Receivables from Multilateral Development Banks ------Receivables from Central Governments and Central Banks 60 - 60 - - - 5 Receivables from International Organizations ------Receivables from Regional or Local Governments 22.372.118 479.297 22.372.118 479.297 22.851.415 %100 6 Receivables from Banks and Financial Intermediaries - - 1.737.252 - - 39.328 - - - 1.776.580 Receivables from Administrative Units and Non-Commercial Enterprises ------Receivables from Multilateral Development Banks ------7 Corporate Receivables ------Receivables from International Organizations ------8 Retail receivables - - - - - 26.997 - - - 26.997 Receivables from Banks and Financial Intermediaries 1.776.580 - 1.776.580 - 386.778 %21,77 Receivables guaranteed with mortgage of real estate for 9 ------Corporate Receivables ------residence purpose Receivables guaranteed with mortgage of real estate for Retail receivables 26.997 - 26.997 - 26.997 %100 10 ------commercial purpose Receivables guaranteed with mortgage of real estate for residen-ce purpose ------11 Non-performing receivables ------Receivables guaranteed with mortgage of real estate for com-mercial purpose ------Non-performing receivables ------12 Receivables considered High Risk by the Board ------Receivables considered High Risk by the Board ------13 Securities with Mortgage guarantee ------Securities with Mortgage guarantee ------Short Term Receivables from Banks and Financial Short Term Receivables from Banks and Financial Intermediaries and Short Term 14 ------Intermediaries and Short Term Corporate Receivables Corporate Receivables 15 Investments as Collective Aid Organization ------Investments as Collective Aid Organization ------Other Receivables 713.535 14.278.697 713.535 7.139.349 7.848.819 %99,94 16 Other Receivables 1.980 - 2.606 - - 7.848.298 - - - 7.852.884 Share certificate investments 17 Share certificate investments ------Total 25.249.290 14.757.994 25.249.290 7.618.646 31.114.009 %95,71 18 Total 2.040 - 1.739.858 - - 30.766.038 - - - 32.507.936 154 155

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

X. Explanations on risk management (Continued) The Bank does not have any of the aforementioned instruments except foreign exchange position. According to the Article 22 of the pozisyon Regulation on Measurement and Assessment of Capital Adequacy of Banks Sermaye, if the net foreign currency position is less than 2% of 4. Explanations on counterparty credit risk the equity, 0 is taken; Since the Bank’s net foreign currency position is below this ratio, capital requirement for currency risk is not calculated. Within the scope of paragraph 8 of Article 4 of the Regulation on Measurement and Evaluation of Banks’ Capital Adequacy, the counterparties Estimates of value exposed to risk (RMD) are calculated on a daily basis using Parametric, Monte Carlo and Historical Simulation Methods arising from the following transactions in the banking and trading accounts shall calculate the capital liability for the counterparty credit risk. The in the calculations made with Inner Method. On the other hand, advanced RMD analysis with mariginal and incremental RMD calculations risk exposure calculation for counterparty credit risk for collateralised derivative financial instruments in trading accounts is the same for collate- are made on weekly basis and retro-backtesting is performed daily to test the reliability of the models used. The Bank is exempted from ralized counterpart derivative instruments in banking accounts. preparing stress tests and scenario analysis and to report them to BRSA but conducts stress tests and scenario analysis on market risks The risk exposure calculation for the counterparty loan risk for the repo transactions in the trading accounts is also made within the framework internally. RMD-based limits have been set within the scope of the “Risk and Authority Limitations Implementation Procedures” enforced of the principles and procedures stated in the Communiqué on Loan Risk Reduction Techniques and the Annex-2 for the repurchase transactions by the Board of Directors decision on the market risk in the bank. in the banking accounts. 7. Notes on operational risk a) Derivative transactions, Amount subject to operational risk is calculated with the fundamental indicator method according to the Article 25 of the Regulation regarding b) Repo transactions, the Measurement and Assessment of Capital Adequacy of Banks. Securities to be held until maturation and that are ready to be sold for the c) Securities or commodity borrowing transactions, total net amounts of annual gross income,interest income and non-interest income are calculated by subtracting the profit/loss and extraor- ç) Loaned securities transactions, dinary income arising from the sale of marketable securities tracked as accounts and amounts compensated from the insurance. d) Transaction with long period of exchange

The risk weights related to the transactions listed above in the banking accounts are taken into account in the same way for the transac- Current Period 31.12.2015 31.12.2016 31.12.2017 Total/Positive BG years Ratio (%) Total tions in the trading accounts. The capital obligation for the counterparty loan risk and counterparty loan risk is not calculated because the bank does not perform such transactions. Gross Income 1.129.068 1.316.383 1.606.851 1.350.767 15 202.615

4.1. Credit derivatives Operational Risk Base Amount (Total * 12.5) 2.532.688

The Bank has no credit derivatives.

4.2. There are risks available to Central Counter Party 8. Issues to be disclosed to the public on the interest rate risk in banking accounts

The Bank has no. It is calculated and reported on a monthly basis within the scope of the Regulation on Measurement and Evaluation of the Interest Rate 5. Points to be disclosed to public related to securitization Risk Arising from Banking Accounts with Standard Shock Method.

There are no points to be disclosed to public related to securitization. Differences in economic value arising from fluctuations in interest rates in accordance with the related regulation,

6. Explanation disclosed to public on market risk Current Period (31.12.2018) Earnings/Shareholders ‹Equity - Applied Shock (+/- x base points) Earnings / Losses Losses/Shareholders› Equity Market risk includes the Bank’s general market risk, foreign currency risk, specific risk, commodity risk, settlement risk and counterparty Currency unit credit risk in trading accounts. The Bank’s Market Risk Basis Amount, legal reporting plans, is the general assembly of the Standard Met- hod calculated monthly and the Bank calculates the Standard Ratio of Capital Adequacy. In addition, the Bank calculates the Market Risk 1 TRY +500 / (400) baz puan (2.654.889) / 2.741.865 (%14,63) / %15,11 Based Amount with the ebliğ Internal Model bulunan with the provisions of lı Calculation of Market Risk with Risk Measurement Models 2 Euro +200 / (200) baz puan 21.015 / (9.855) %0,12 / (%0,05) and the Complaints of Risk Measurement Models with Risk Measurement Models ına and decided to announce the Risk Management 3 US Dollar +200 / (200) baz puan 0 / 0 %0 / %0 Department on average monthly periods. Total (For Negative Shocks) 2.732.010 %15,06

Iller Bank does not accept deposits. Its banking functions, which are governed by article 77 of the Banking Law no 5411, consist firstly of Total (For Positive Shocks) (2.633.873) (%14,52) extending cash and non-cash loan to municipalities and to special provincial authorities against allotments of general budget revenues and collateral consisting of municipal revenues, both of which are transferred to the Bank, and secondly of mediating insurance. The interest PreviousDönem (31.12.2017 Earnings/Shareholders ‹Equity - rates on such transactions are determined by the Bank’s Board of Directors in accordance with current conditions. Applied Shock (+/- x base points) Earnings / Losses Losses/Shareholders› Equity Para Birimi Market risk instruments are as follows: Shares 1 TRY +500 / (400) baz puan (2.357.937) / 2.496.585 (%14,82) / %15,69 Government and private sector Notes and bonds and other debt instruments 2 Euro +200 / (200) baz puan 761 / 388 %0,00 / (%0,00)

Repo / Reverse Repo 3 US Dollar +200 / (200) baz puan 0 / 0 %0 / %0

Money sale transactions between banks foreign exchange position Total (For Negative Shocks) 2.496.972 %15,69 Derivative products stipulated in Capital Market Law Total (For Positive Shocks) (2.357.176) (%14,81) Other capital market instruments Other accounts caused by the banking accounts and whose interest ratio risk is calculated. 156 157

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

ç. Information on Banks: SECTION FIVE ç.1. Banks account

Current Period Previous Period Explanations and Footnotes on Financial Statements TRL FX TRL FX Banks 2.712.861 124.434 1.739.858 39.332

I. Remarks and Footnotes on Asset Accounts Domestic 2.712.861 124.434 1.739.858 39.332

Foreign Banks - - - - a. Cash and Balances with the Central Bank of Turkey: Foreign Headquarters and Branches - - - - a.1. Information on Cash and Balances with the Central Bank of Turkey (TCMB) Other Financial Institutions - - - - Total 2.712.861 124.434 1.739.858 39.332

Current Period Previous Period d. Information on financial assets at fair value through profit or loss TRL FX TRL FX Cash in Vault /Banknotes 154 - 215 - d.1. Information about financial assets available-for-sale subject to repo transactions or otherwise posted as guarantees or blocked Central Bank of Turkey 63 - 60 - The Bank has no available-for-sale financial assets subject to repurchase agreements and given as collateral / blocked. Other - - - - Total 217 - 275 - e. Gerçeğe uygun değer farkı diğer kapsamlı gelire yansıtılan finansal varlıklara ilişkin bilgiler

There are no financial assets at fair value through profit or loss. a.2. Information on Balances with the Central Bank of Turkey e.1. Information on financial assets available-for-sale: (Previous period)

Current Period Previous Period NİĞBAŞ Niğde Beton Sanayi A.Ş., where the Bank’s financial assets available for sale are less than 10%. and Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. TRL FX TRL FX Unrestricted Demand Deposit 63 - 60 - Previous Period Unrestricted Time Deposit - - - - Debt Securities - Restricted Time Deposit - - - - Traded on the Stock Exchange - Total 63 - 60 - Not Traded on the Stock Exchange - Shares 2.667 Traded on the Stock Exchange 2.667 b. Financial Assets at Fair Value through Profit or Loss: Not Traded on the Stock Exchange - b.1. Financial Assets at Fair Value through Profit or Loss: Impairment Reserves(-) (2.193) Total 474 The Bank’s NİĞBAŞ Niğde Beton Sanayi A.Ş. shareholding financial assets at fair value through profit or loss less than 10%. and Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. As of 31 December 2018, the net value is TL 2.014. f. Information on the Bank’s loans: b.2. Information about financial assets subject to repo transactions or otherwise posted as guarantees or blocked f.1. Information about outstanding balances of all types of loans and advances given by the Bank to its shareholders and/or employees

Banka’nın teminata verilen/bloke edilen veya repo işlemine konu edilen, alım satım amaçlı menkul değerleri bulunmamaktadır. Current Period Previous Period Cash Non-cash Cash Non-cash c. Chart showing positive differences in derivative financial instruments held for trading purposes: Direct Lending to Shareholders 28.252.248 1.754.704 22.382.961 479.297

Lending to Corporate Shareholders 28.252.248 1.754.704 22.382.961 479.297 The bank has no derivative financial assets held for trading purposes. Lending to Natural Person Shareholders - - - -

Indirect Lending to Shareholders - - - -

Lending to Employees 36.234 - 26.997 -

Total 28.288.482 1.754.704 22.409.958 479.297 158 159

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

f. Information on the Bank’s loans (Continued) f.2. Information on Loans in Standardized and Close Monitoring Loans and in Restructured Close Monitoring f.3. Cash loans according to their maturity structures

Current period Closely Monitored Loans Closely Monitored Loans Restructured Current Period Standard Loans Those who are not covered by Standard Loans Restructured Those who are not covered by restructuring Cash loans Those with Amended restructuring Refinancing Agreements Short-Term Loans and Other Receivables 77.032 - -

Non-Specialized Loans 36.234 - - - Non-Specialized Loans 10.014 - -

Operation Loans - - - - Specialized Loans 67.018 - - Export Loans - - - - Medium- and Long-Term Loans and Other Receivables 28.211.450 - - Import Loans - - - - Non-Specialized Loans 26.220 - - Loans Extended to Financial Sector - - - - Specialized Loans 28.185.230 - - Consumer Loans - - - -

Credit Cards - - - -

Other 36.234 - - - Closely Monitored Loans and Other Recei- Specialized Loans 28.252.248 - - - Previous Period Standard Loans and Other Receivables vables Other Receivables - - -

Total 28.288.482 - - - Loans and Other Those with Amended Loans and Other Those with Amended Recei-vables Ag-reements Receivables Agreements f.2. Information about first- and second-group loans and other receivables, including loans that have been restructured or rescheduled Short-Term Loans and Other Receivables 71.570 - - - Non-Specialized Loans 6.107 - - - Previous Period Specialized Loans 65.463 - - - Standard Loans and Other Receivables Closely Monitored Loans and Other Receivables Other Receivables - - - - Cash loans Loans and Other Loans and Other Those with Amended Agreements Those with Amended Agreements Receivables Receivables Medium- and Long-Term Loans and Other Receivables 22.338.388 - - - Payment Plan Payment Plan Non-Specialized Loans 20.890 - - - Extending the Extending the Other Other Intended Change who Intended Change who Specialized Loans 22.317.498 - - - made made Other Receivables - - - - Non-Specialized Loans 26.997 - - - - - Operation Loans ------Export Loans ------Import Loans ------Loans Extended to Financial Sector ------

Consumer Loans ------

Credit Cards ------

Other 26.997 - - - - -

Specialized Loans 22.382.961 - - - - - Other Receivables ------

Total 22.409.958 - - - - -

No. 6107 of Iller Bank A.Ş. The provisions of Article 13, paragraph 5 of the Law, are not reserved for loans in accordance with the provisions of the Banking Law No. 5411 on provisions.

No changes to extend the payment plan is made on loans. 160 161

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

f. Information on the Bank’s loans (Continued) f. Information on the Bank’s loans (Continued) f.4. Information on consumer loans, individual credit cards and personnel loans and personnel credit cards (Continued) f.4. Information on consumer loans, individual credit cards and personnel loans and personnel credit cards (Continued)

Current Period Short Term Medium and Long term Total Previous Period Kısa Vadeli Orta ve Uzun Vadeli Toplam

Consumer Loans-TRL - - - Consumer Loans-TRL - - - Housing Loans - - - Housing Loans - - - Vehicle Loans - - - Vehicle Loans - - - General Purpose Consumer Loans - - - General Purpose Consumer Loans - - - Other - - - Other - - - Consumer Loans-FC Indexed - - - Consumer Loans-FC Indexed - - - Housing Loans - - - Housing Loans - - - Vehicle Loans - - - Vehicle Loans - - - General Purpose Consumer Loans - - - General Purpose Consumer Loans - - - Other - - - Other - - - Retail Credit Cards-TRL - - - Retail Credit Cards-TRL - - - Housing Loans - - - Housing Loans - - - Vehicle Loans - - - Vehicle Loans - - - General Purpose Consumer Loans - - - General Purpose Consumer Loans - - - Other - - - Other - - - Retail Credit Cards-TRL - - - With Installment - - - Retail Credit Cards-TRL - - - Without Installment - - - With Installment - - - Retail Credit Cards-FC - - - Without Installment - - - With Installment - - - Retail Credit Cards-FC - - - Without Installment - - - With Installment - - - Personnel Loans-TRL 10.014 26.220 36.234 Without Installment - - - Housing Loans - - - Personnel Loans-TRL 6.107 20.890 26.997 Vehicle Loans - - - Housing Loans - - - General Purpose Consumer Loans 10.014 26.220 36.234 Vehicle Loans - - - Other - - - General Purpose Consumer Loans 6.107 20.890 26.997 Personnel Loans-FC Indexed - - - Other - - - Housing Loans - - - Personnel Loans-FC Indexed - - - Vehicle Loans - - - Housing Loans - - - General Purpose Consumer Loans - - - Vehicle Loans - - - Other - - - General Purpose Consumer Loans - - - Personnel Loans-FC - - - Other - - - Housing Loans - - - Vehicle Loans - - - Personnel Loans-FC - - - General Purpose Consumer Loans - - - Housing Loans - - - Other - - - Vehicle Loans - - - Personnel Credit Cards-TRL - - - General Purpose Consumer Loans - - - With Installment - - - Other - - - Without Installment - - - Personnel Credit Cards-TRL - - - Personnel Credit Cards-FC - - - With Installment - - - With Installment - - - Without Installment - - - Without Installment - - - Personnel Credit Cards-FC - - - Overdraft Account-TP (Real Person) - - - With Installment - - - Overdraft Account - FX (Real Person) - - - Without Installment - - -

Total 10.014 26.220 36.234 Total 6.107 20.890 26.997 162 163

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

f. Information on the Bank’s loans (Continued) f. Information on the Bank’s loans (Continued) f.5. Installment-based commercial loans and corporate credit cards f.10. Information on non-performing loans (Net)

There are no installment-based commercial loans or corporate credit cards. f.10.i. Information on loans and other receivables included in non-performing loans, which are restructured or rescheduled: f.6. Breakdown of loans by borrowers: There are no loans or other receivables included in non-performing loans, which are restructured or rescheduled by the Bank.

Current Period Previous Period f.10.ii. Movement of total non-performing loans

Public 28.252.248 22.382.961 III. Group IV. Group V. Group Private (*) 36.234 26.997 Current Period Provisions for Limited Loans Doubtful Loans Non-Performing Loans TOTAL 28.288.482 22.409.958 Prior Period Ending Balance - - - Additions in the Current Period (+) - - - f.7. Breakdown of domestic and international loans Transfers from other NPL Categories (+) - - -

Current Period Previous Period Collections in the Current Period (-) - - - Collections in the Current Period (-) - - - Domestic Loans 28.288.482 22.409.958 Write-offs (-) Foreign Loans - - Sold (-) - - - TOTAL 28.288.482 22.409.958 Corporate and Commercial Loans - - - Consumer Loans - - - f.8. Loans to subsidiaries and affiliated corporations Credit Cards - - - Other - - - There are no loans extended to any subsidiary or affiliated corporation. Current Period Ending Balance - - - Provisions (-) - - - f.9. Specific provisions for loans or default (Third Stage) provisions Net Balance on Balance Sheet - - -

Özel Karşılıklar Current Period

Provisions for Limited Loans - f.10.ii. Movement of total non-performing loans (Previous Period) Doubtful Loans - III. Group IV. Group V. Group Non-Performing Loans - Previous Period Loans and Receivables with Loans and Receivab-les with Doubtful Uncollectible Loans and Other TOTAL - Limited Collecta-bility Collectability Receivab-les Prior Period Ending Balance - 555 - Additions in the Current Period (+) - - - f.9. Specific reserves provided against loans (Previous Period) Transfers from other NPL Categories (+) - - - Transfers to other NPL Categories (+) - - - Specific provisions Previous Period Collections in the Current Period (-) - - -

Provisions for Limited Liabilities and Other Receivables - Write-offs (-) - (6) - Corporate and Commercial Loans - - - Doubtful Loans and Other Receivables Provisions for 549 Consumer Loans - - - Non-Performing Loans and Provision for other receivables - Credit Cards - - - TOTAL 549 Other - (6) - Current Period Ending Balance - 549 - Under the provision that the requirement to set aside provisions made in the Banking Law no 5411 is not applicable to İller Bank as per Specific Provisions (-) - (549) - Article 13 (5) of the Law no. 6107 governing Iller Bank INC.., specific provisions set aside by the Bank pertain to the Bank’s receivables other Net Balance on Balance Sheet - - - than those arising from lending transactions that are in litigation. Net Balance on Balance Sheet - - -

f.10.iii. Non-performing loans arising from loans extended in foreign currency YThere are no non-performing loans arising from loans extended in a foreign currency. 164 165

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand) f. Information on the Bank’s loans (Continued) h. Information on affiliated corporations (Net) f.10. Information on non-performing loans (Net) (Continued) None. ı. Information on jointly-controlled entities (joint ventures): f.10.iv. Gross and net non-performing loans and receivables as per customer categories borrowers None. III. Group IV. Group V. Group i. Information on leasing receivables (Net) Provisions for Limited Loans Doubtful Loans Non-Performing Loans Current Period (Net) - - - The Bank has no leasing transactions. However, the Bank does have TRL 3.239 in receivables (TRL 3.217 as of 31 December 2017) arising Loans to Individuals and Corporations (Gross) - - - from its renting out real estate properties that it owns. Provisions (-) - - - Loans to Individuals and Corporations (Net) - - - j. Positive differences related to hedging derivative financial assets table Banks (Gross) - - - None Provisions (-) - - - Banks (Net) - - - k. Information on Tangible Fixed Assets (Net): Other Loans (Gross) - - - Provisions (-) - - - Tangible Fixed Assets Acquired Other Tangible Current Period Real Estate Vehicles Total Other Loans (Net) - - - through Leasing Vehicles Fixed Assets Prior Period’s End (31.12.2017) III. Group IV. Group V. Group Cost 188.880 - 1.662 37.208 227.750 Provisions for Limited Loans Doubtful Loans Non-Performing Loans Accrued Depreciation (49.489) - (1.661) (31.821) (82.971) Previous Period (Net) - - - Net Book Value 139.391 - 1 5.387 144.779 Loans to Individuals and Corporations (Gross) - - - Current Period’s End (31.12.2018) - Specific Provisions (-) - - - Loans to Individuals and Corporations (Net) - - - Cost at the Beginning of the Period 188.880 - 1.662 37.208 227.750 Banks (Gross) - - - Acquired 57.357 - - 5.113 62.470 Specific Provisions (-) - - - Disposed (4.820) - - (2.002) (6.822) Banks (Net) - - - Closing Cost Value 241.417 - 1.662 40.319 283.398 Other Loans and Receivables (Gross) - 549 - Accumulated Depreciation at the Beginning of 49.489 - 1.661 31.821 82.971 Specific Provisions (-) - (549) - the Period Other Loans and Receivables (Net) - - - Current Period Depreciation 2.721 - - 2.808 5.529 Disposal Depreciation (708) - - (1.722) (2.430) f.11.-12. Explanations on the liquidation policy and write-off policies for the loans and other receivables in the nature of loss End of Period Accumulated Deprecia-tion 51.502 - 1.661 32.907 86.070 BLoans provided by the bank are given by the shares of the local governments distributed by the Bank and some of the municipalities Closing Net Book Value 189.915 - 1 7.412 197.328 as warranty. For the other receivables of the Bank, the proceeds from the legal remedies are applied, and from time to time, the General

Assembly deletes within the framework of the Bank’s Law, taking into consideration the state of the debtor and the costs to be collected. Tangible Fixed Assets Acquired Other Tangible Prior Period Real Estate Vehicles Total through Leasing Vehicles Fixed Assets g. Financial assets at amortized cost Prior Period’s End (31.12.2016) g.1. Information on net values and comparative, subject to repo transactions and given / given as collateral Cost 180.674 - 1.933 36.855 219.462 Accrued Depreciation (50.059) - (1.931) (30.626) (82.616) The Bank has no investments which are the subject of repo transactions or which have been otherwise posted as guarantees or blocked Net Book Value 130.615 - 2 6.229 136.846 g.2. Information on government debt securities valued at amortized cost Current Period’s End (31.12.2017) - Cost at the Beginning of the Period 180.674 - 1.933 36.855 219.462 There are no government debt securities valued at amortized cost. Acquired 29.518 - - 1.760 31.278 g.3. Information on financial assets carried at amortized cost Disposed (21.312) - (271) (1.407) (22.990) Closing Cost Value 188.880 - 1.662 37.208 227.750 There are no financial assets valued over their amortized cost. Accumulated Depreciation at the Beginning of 50.059 - 1.931 30.626 82.616 g.4. The movements of financial assets valued over their amortized cost the Period Current Period Depreciation 2.546 - 1 2.366 4.913 The financial assets carried at amortized cost have no movement during the year. Disposal Depreciation (3.116) - (271) (1.171) (4.558) ğ. Information on subsidiaries: End of Period Accumulated Deprecia-tion 49.489 - 1.661 31.821 82.971 Closing Net Book Value 139.391 - 1 5.387 144.779 None. 166 167

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

n. Information on deferred tax assets l. Information on intangible fixed assets: Deductible temporary differences, financial losses, tax deductions and exemptions. Current Period Yazılımlar

End of Previous Period (31.12.2017) Deferred Tax Assets Current Period Previous Period Cost 19.306 Reserves for Employee Entitlements 21.208 19.827 Accumulated Depreciation (16.790) Impairment of Subsidiaries 131 439 Net Book Value 2.516 Other 14.435 77.380 End of Current Period (31.12.2018) Tax Procedure Law-TMS Depreciation Differences (605) (763) Cost Value at the Beginning of the Period 19.306 Total 35.169 96.883 Acquired 365

Disposals - As of December 31, 2018, the Bank does not have any deferred tax asset calculated over tax deductions and exceptions. However, the Closing Cost Value 19.671 deferred tax asset amounting to TRL 35.774 and deferred tax liability amounting to TRL 605, which is calculated between the book value Amortization Per Period (16.790) of the assets or liabilities stated in the balance sheet and the tax basis determined in accordance with the tax legislation and which will Amortization Of Current Period (1.705) be taken into consideration in the calculation of financial profit / loss in the following periods, are accounted for by net off. TRL 35.169 is Disposals’ Redemption - reflected.

Accumulated Redemptions at the End of the Period (18.495) o. Information on fixed assets held for sale and associated with discontinued operations Net Book Value at Closing 1.176 The Bank has no fixed assets held for sale or which are associated with discontinued operations.

Previous Period Yazılımlar ö. Information on other assets

End of Prior Period (31.12.2016) As at 31 December 2018 and 31 December 2017, other assets item of the balance sheet does not exceed 10% of total assets, except for Cost 17.666 the commitments shown in off-balance sheet accounts. Accumulated Depreciation (14.879)

Net Book Value 2.787

End of Current Period (31.12.2017)

Cost Value at the Beginning of the Period 17.666

Acquired 1.640

Disposals -

Closing Cost Value 19.306

Accumulated Depreciation at the Beginning of the Period (14.879)

Current Period Depreciation (1.911)

Disposal Depreciation -

Accumulated Amortization At The End Of The Period (16.790)

Closing Net Book Value 2.516 m. Information on investment property Depreciation of TRL 145 thousands from the carrying value of TRL 779 as of 31 December 2018 and a decrease in the value of TRL 425 less impairment are recognized in the investment property amounting to TRL 205 and the third item of the Banking Law 2 (h) and (ı) of the Capital Markets Board, the Company has investment properties amounting to TRL 673.415 (December 31, 2017: TRL 295.425) with a registered value of TRL 673.210. 168 169

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

II. Remarks and footnotes on liability accounts c.3. Funds Current Period Previous Period a. Information on the maturity structure of deposits: TRL FX TRL FX a.1.1. Maturity structure of deposits Other(*) 8.230.391 11.251 6.099.871 - Total 8.230.391 11.251 6.099.871 - Iller Bank is a development and investment bank whose activities are governed by Article 77 of the Banking Law no 5411. The Bank is not authorized to accept deposits. (*)The amount of 8.241.642 TL from the other financial institutions, 4.415.352 TL 5779 numbered Maliye Provincial Special Administrations of Municipalities and Municipalities According to the Law on the Transfer of General Budget Tax Revenues TL by the Ministry of Finance transferred by the Bank to the local government will be distributed to the section, 1.459 TL .576 is transferred to the Bank for Water and Sewerage Infrastructure Projects (SUKAP), 1.204.882 TL for the bank and the funds allocated for the lower and superstructure needs of the municipalities and villages, TL 4.034 a.1.2. Information on savings deposits in the scope of deposit insurance and exceeding the deposit insurance limit for the KENT-DES Project. TL 29,159 to the amount transferred to the Bank within the scope of IPA Project, TRY 249,359 Thousand of Disaster and Emergency Direction. TL 50.180 of the amount transferred to the Bank for urban infrastructure services, TL 89.172 to Istanbul Financial Center Infrastructure Investments, TL 37.231 to Bank Transfer to Solid Waste Program, TL 679.051 to the Banka, 5411 sayılı Bankacılık Kanunu’nun 77’nci maddesi çerçevesinde faaliyet göstermekte olup, mevduat kabul yetkisi bulunmayan Bank’s shareholders 12.395 TL belongs to other funds and TL 11.251 belongs to the grant fund provided by World Bank under the Sustainable Cities Project. kalkınma ve yatırım bankasıdır. ç. “Other long-term liabilities” that account for more than 10% of the balance sheet total and the a.2. Merkezi yurtdışında bulunan bankanın Türkiye’deki şubesinde bulunan tasarruf mevduatı, merkezin bulunduğu ülkede sigor- names and amounts of the subaccounts that constitute at least 20% of the same ta kapsamında olup olmadığı There are no other long-term liability items that account for more than 10% of the balance sheet total. Iller Bank is a development and investment bank whose activities are governed by Article 77 of the Banking Law no 5411. The Bank is not d. Information on leasing payables (net) authorized to accept deposits. Information on financial leasing liabilities a.4. Saving deposits with no deposit insurance The Bank has no financial leasing payables Iller Bank is a development and investment bank whose activities are governed by Article 77 of the Banking Law no 5411. The Bank is not e. Information on payables related to derivative financial instruments held for hedging authorized to accept deposits. Negative differences related to derivative financial liabilities held for hedging purposes b. Information on derivative financial liabilities held for trading: None. Chart showing the negative differences on derivative financial liabilities held for trading f. Information on reserves The Bank has no derivative financial liabilities held for trading purposes. f.1. General reserves c. Banks and other financial institutions Pursuant to Article 13(5) of the Law no. 6107 governing Iller Bank INC.., the reserve requirements of the Banking Law no. 5411 does not apply to Iller Bank. c.1. Banks and other financial institutions f.2. Provisions for foreign exchange losses on foreign currency indexed loans and finance leases Current Period Previous Period Pursuant to Article 13(5) of the Law no. 6107 governing Iller Bank INC.., the reserve requirements of the Banking Law no. 5411 does not TRL FX TRL FX apply to Iller Bank. Borrowings from the Central Bank of TURKEY - - - -

Borrowings from Domestic Banks and Institutions 1.176.434 - - - f.3. Were have not been reimbursed or converted into cash non-cash loans special provisions

BorrowingsfromForeignBanks, Institutionsand Funds(*) - 2.573.219 - 1.687.221 Pursuant to Article 13(5) of the Law no. 6107 governing Iller Bank INC.., the reserve requirements of the Banking Law no. 5411 does not

Total 1.176.434 2.573.219 - 1.687.221 apply to Iller Bank.

f.4.1. Other reserves c.2. Maturity analysis of funds borrowed The Bank gained the controlling revenues from consulting services provided to local governments is planned to be distributed to staff pur- suant to the 32nd article of the insurance proceeds Incorporation, but by the union for the distribution of amounts not decide to distribute

Current Period Previous Period is the legal process started, as of December 31, 2018 related to these amounts TRL 74.500 separated. (31 December 2017: TRL 383.706). TRL FX TRL FX As of December 31, 2017, the Bank set aside reserves amounting to TRL 3,195 (December 31, 2017: TRL 3,195) for rent receivables which were not collected within the stipulated term, and for which legal procedures were initiated. Short Term - - - -

Medium- and Long-Term(*) 1.176.434 2.573.219 - 1.687.221 As of 31 December 2018, the Bank has provided a provision of TL 549 for the receivables that are in the process of litigation. Total 1.176.434 2.573.219 - 1.687.221 f.4.2. Reserve for employee entitlements Reserves amounting to TRL 105.585 are set aside as of December 31, 2018 for the pension entitlements of the Bank’s contractual personnel (*) Medium-and long-term loans secured from foreign banks, institutions and funds are related to the amounts extended to municipalities out of the loan received from the World Bank under the Municipal Services Project, and the loan received from JICA (Japan International Cooperation Agency under the Municipal Sewage and Waste Water Treatment Plants Development Project. and for the service award entitlements of its blue-collar personnel within the framework of the provisions of the “Turkish Accounting Standard concerning Employee Benefits” (TMS 19) (December 31, 2017: TRL 99.305). 170 171

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

g. Explanation related to Tax Obligation: ı. Information on shareholders’ equity: (Continued) g.1. Information on taxes payable ı.3. Share capital increases during the reporting period; their sources and increased capital shares

Current Period Previous Period In the current period, increase in the nominal capital of the Bank was not performed; TRL 1.725.352 was collected for capital. Of this Payable Corporate Income Tax 116.300 103.899 amount, TRL 1.435.614 consisted of the 2% monthly deductions made from the total shares of the tax revenues to be distributed every Income Tax Withholding 8.330 7.583 month by the Ministry of Finance and Iller Bank under the Statute 5779 on Allotments of General Budget Revenues to be Allocated to Tax on Security Income - - Special Provincial Authorities and Municipalities and TRL 289.738 consisted from 30% portion set aside from the Bank’s profit for 2017 to Tax on Real Estate Income - - be injected into the capital as per the Banking Law. Banking Insurance Transaction Tax 1.227 880 Foreign Exchange Transactions Tax - - ı.4. Portions of capital reserves added to capital during the reporting period Payable Value Added Tax 9.276 11.009 Other 1.674 1.350 None. Total 136.807 124.721 ı.5. Capital commitments during the most recent fiscal year and the period since its end; the general nature of such commitments g.2. Information on premiums and the presumed sources of their funding Current Period Previous Period Social Security Premiums - Employees 1.862 1.475 The Bank’s governing law does not permit it to enter into capital commitments. The Bank’s capital consists of the 2% monthly deductions Social Security Premiums - Employer 2.728 2.157 made from the total shares of the tax revenues to be distributed every month by the Ministry of Finance and Iller Bank under the Law no. Bank Social Aid Fund Premiums - Employees - - 5779 on Allotments of General Budget Revenues to be Allocated to Special Provincial Authorities and Municipalities and capital shares set Bank Social Aid Fund Premiums - Employer - - aside at the ratio of 30% from the Bank’s distributable profit. Pension Fund Membership Fees and Reserves – Employees - - Pension Fund Membership Fees and Reserves – Employer - - ı.6. Prior-period evidence of the Bank’s income, profitability, and liquidity; the likely impact of any uncertainties in such evidence Unemployment Insurance -Employees 133 106 Unemployment Insurance – Employer 267 210 on the Bank’s equity resources Other 2.280 518 The Bank has defined a lending and interest rate policy that is capable of minimizing the losses from which it may suffer. Under the Bank’s Total 7.270 4.466 governing law, the Bank’s cash inputs consist of capital collections, which are the 2% monthly deductions made from the total shares of the g.3. Information on deferred tax obligations tax revenues to be distributed every month by the Ministry of Finance and Iller Bank under Law no. 5779 on Allotments of General Budget Revenues to be Allocated to Special Provincial Authorities and Municipalities and the amounts of principal and interest that it receives on As of December 31 2018, the Bank has no deferred tax obligations (See footnote V-I-n). its lendings. ğ. Information on obligations related to fixed assets held for sale or associated with discontinued operations ı.7. Brief information on the privileges granted to shares representing capital As of the balance sheet date, the Bank had no obligations related to fixed assets held for sale or which were associated with discontinued The Bank’s capital is not represented by any shares. operations. h. Explanations related to the number, maturity, interest rate, maturity of the capital-like debt instruments used ı.8. Information on securities increment value fund by the bank and the option to convert the stock to equity, if any, and information related to subordinated loans The Bank does not have securities increment value fund.

The Bank has not received any subordinated loans. Information on revaluation fund

ı. Information on shareholders’ equity: Current Period Previous Period ı.1. Presentation of paid-in capital TRL FX TRL FX Fixed assets - - - - Current Period Previous Period Property - - - - Common Stock (*) 14.847.536 13.122.184 Real Estate and Gain on Sale of Subsidiary 172.630 - 171.709 - Preferred Stock - -

(*) Pursuant to the Bank’s governing statute, Iller Bank’s capital is not divided into shares and no share certificates have been issued.

ı.2. The amount of paid-in capital; whether the Bank adheres to the registered capital system; registered capital cap if applicable

Registered capital system is not applicable to the Bank by virtue of its governing statute. 172 173

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

III. Explanations and Footnotes on Off-Balance Sheet a.3.ii. Sectoral Risk Concentration of Non-cash Loans: The Bank is not exposed to any specific sectoral risks in its non-cash credit accounts and all of Iller Bank’s non-cash credit is granted to a. Explanations of liabilities found in the off-balance sheets: local governments. a.1. Types and amounts of irrevocable loan commitments a.3.iii. Information on non-cash loang classified ingroup I and II With the World Bank “Sustainable Cities Project” signed on 26 December 2016 and which are guaranteed by the bank guarantee should be extended to local government loans and credit agreements is TRL 727.688. Group I Group II Current Period As per the guarantee and loan agreements signed on May 16, 2018 within the scope of ’Sustainable Cities Project II imzalan, the total TRL FX TRL FX amount of loans pledged by the bank and to be extended to local administrations is TL 443.058, amounting to TL 1.170.746. (31 December Non-cash Loans 1.702.603 52.101 - - 2017: TL 549.815). Letters of Guarantee 1.702.603 52.101 - - Bills of Guarantee and Bank Acceptances - - - - Credits which had been underwritten by the Bank under the guarantee and credit agreements signed with Japan International Cooperation Letters of Credit - - - - Agency (JICA) within the scope of “Municipal Sewerage and Wastewater Treatment Improvement Project” on June 22, 2011 and which will Endorsements - - - - be made available to medium-sized municipalities amounted to TRL 105.663 and credits guaranteed by the bank according to the guaran- Underwriting Commitments of the Securities Issued - - - - tee and credit agreements that have been signed on May 15, 2015 and have entered into force on August 14, 2015 to local governments Factoring Related Guarantees - - - - amount to TRL 1.535.446 making a total of TRL 1.641.109 (31 December 2017: TRL 1.434.276). Other Guarantees and Warranties - - - -

The grand total of the credits to be extended to Municipalities under the commitment of the Bank as per the guarantee and credit ag- reements signed on June 28, 2012 with the European Investment Bank within the framework of “Urban Infrastructure Projects” is TRL Group I Group II Previous Period 904.200 and credits guaranteed by the Bank according to the guarantee protocol signed on 06.10.2015 to be granted to Municipalities TRL FX TRL FX amount to TRL 1.507.000 making a total of TRL 2.411.200 (31 December, 2017: TRL 1.819.120). Non-cash Loans 476.909 2.388 - - Letters of Guarantee 476.909 2.388 - - Within the context of “Urban Transportation Projects” with the Islamic Development Bank, the total amount of credits to be used for the Bills of Guarantee and Bank Acceptances - - - - Municipalities that are committed to guarantee and loan agreements signed on August 29, 2016 is TRL 742.709 (31 December 2017: Letters of Credit - - - - TRL582.813) Endorsements - - - - The total value of all lendings underwritten by the Bank for municipalities’ infrastructure and superstructure services is TRL 5.927.879 (31 De- Underwriting Commitments of the Securities Issued - - - - cember 2017: TRL 9.892.673). The Bank’s total credit commitment exposure amounts to TRL 11.893.643 (31 December 2017: TRL 14.278.697). Factoring Related Guarantees - - - - Other Guarantees and Warranties - - - - a.2. The structure and amount of probable losses and commitments resulting from off-balance sheet items, including those below b. Information on derivative transactions: a.2.i. Guarantees, bank endorsements and acceptances, collaterals that qualify as financial guarantees, and non-cash loans including other The Bank has no derivative financial instruments letters of credit: c. Explanations on credit derivatives and risk As of the balance sheet date the Bank had no guarantees, bank endorsements or acceptances, or collaterals that qualify as financial gua- rantees or non-cash loans including other letters of credit. The Bank has no credit derivatives. a.2.ii. Performance bonds, bid bonds, surety bonds, and similar guarantees ç. Explanations on contingent liabilities and assets:

As of the balance sheet date, the total value of letters of guarantee issued by the Bank amounted to TRL 1.754.704 (31 December 2017: The Bank has no contingent liabilities or assets. TRL 479.297). d. Transactions made on behalf and account of others: a.3. Non-cash loans BIller Bank engages in no trading or custody activities on behalf and account of others nor does it provide consultancy services in relation there to. However the Bank does deduct outstanding and reconciled obligations owed by municipalities and special provincial administrati- Current Period Previous Period ons to public agencies and organizations from the municipal allotments, which are distributed by the Bank pursuant to Article 7 of Statute Non-cash Loans against Cash Risks 1.754.700 479.293 5779, and it pays these amounts to the administrations concerned. One Year or Shorter Term Original Maturity 133.407 98.800 One Year Longer Term Original Maturity 1621.293 380.493 Other Non-Cash Loans 4 4 Total 1.754.704 479.297 174 175

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

IV. Explanations on Income Statement b.3. Interest paid on marketable securities issued a. Interest income: The Bank pays no interest on any marketable securities issued. a.1. Interest income on loans b.4. Interest Expense Incurred on Deposits According to Maturity Structure

Current Period Previous Period The Bank is not authorized to collect deposits.

TRL FX TRL FX

Short-term Loans 8.066 - 8.064 - c. Information on dividend income: Medium- and Long-term Loans 2.133.335 20.314 1.279.653 15.480 Current Period Previous Period Interest on Non-Performing Loans - - - - Financial Assets at Fair Value Through Profit or Loss 10 - Premiums Received from State Resource FunfUtilization Support Fund - - - - Financial Assets at Fair Value Through Other Comprehensive Income - - Total 2.141.401 20.314 1.287.717 15.480 Other - - Total 10 - a.2. Information on interest income from banks

Current Period Previous Period ç. Information on trading income/losses (Net): TRL FX TRL FX

Central Bank of Turkey - - - - Current Period Previous Period Profit 2.733 353 Domestic Banks 157.055 12 171.304 11 Profit from Capital Markets Trading - - Foreign Banks - - - - Profit from Derivative Financial Transactions - - Foreign Headquarters and Branches - - - - Profit from Foreign Exchange Transactions 2.733 353 Total 157.055 12 171.304 11 Loss (3.668) (1.404) Loss from Capital Markets Trading - - a.3. Information on interest income from securities Loss from Derivative Financial Transactions - - Loss from Foreign Exchange Transactions (3.668) (1.404) The Bank receives no interest income from securities. Total (935) (1.051) a.4. Informatin on the interest income from associates and subsidiaries d. Explanation on other operating income: The Bank receives no interest income from associates or subsidiaries Current Period Previous Period b. Interest Expenses: Revenues from Disposal of Assets 263.313 241.321 From Sales of Subsidiaries and Affiliated Corporations - - b.1. Interest expenses incurred on borrowings From Sales of Movables - 1 From Sales of Immovables 263.313 241.320 Current Period Previous Period Rental Income 1.789 2.598 Rental Income from Immovables 1.629 2.457 TRL FX TRL FX Operating Lease Income 160 141 To Banks 87.106 7 29.372 59 Revenues from Control Fund(*) 127.742 133.815 Central Bank of Turkey - - - - Other(**) 357.539 5.587 Domestic Banks 87.106 - 29.372 - Total 750.383 383.321 Foreign Banks - 7 - 59 (*) Revenues derived from the consulting and control services provided by the Bank to local governments. Foreign Headquarters and Branches - - - - (**) TRL 348.439 of the total amount of TRL 357.539 is the cancellation of the expenses in the previous years. To Other Institutions 102.200 190 740 103 Total 189.306 197 30.112 162 e. Expected credit loss provisions of the Bank 6107 “Iller bank A.S. Provisions of Banking Law No. 5411 are not applicable to the bank in accordance with the 5th paragraph of Article TP interest expense to other organizations that resulted from the Bank’s partners provide short-term funds from local governments. 13 of the law on Banking Law No. 5411. b.2. Interest paid to subsidiaries and affiliated corporations

The Bank pays no interest to subsidiaries and affiliated corporations 176 177

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

IV. Explanations on Income Statement (Continued) Deferred tax income/expenses arising from the formation or closure of temporary differences f. Other operating expenses: Deferred Tax Income/Expenses Arising from the Formation or Current Period Previous Period Closure of Temporary Differences

Current Period Previous Period From the formation of deductible temporary differences (+) - - Personnel Expenses* 325.008 287.930 From the closure of deductible temporary differences (-) - -

Reserve for Employee Termination Benefits 10.111 7.660 From the formation of taxable temporary differences (+) 9.105 20.442 Bank Pension Fund Deficit Provisions - - From the closure of taxable temporary differences (-) (70.819) (1.349) Impairment Losses on Tangible Assets - - Depreciation Expenses of Tangible Assets 5.528 4.875 Total (61.714) 19.093 Impairment Losses on Intangible Assets - - Impairment Losses on Goodwill - - Depreciation Expenses of Intangible Assets 1.705 1.912 h. Net operating profit/loss after taxes including net profit/loss from continuing and discontinued operations Impairment Losses on Share of Participations Accounted for Using the Equity Method - - The Bank posted a profit for the period from its ongoing operations in the amount of TRL 2.106.120 (31 December 2017: TRL 1.232.887), Impairment Losses on Marketable Securities to be Disposed - - which is the amount remaining after an ongoing operation tax provision in the amount of TRL 443.766 (31 December 2017: TRL 247.079) Depreciation Expenses of Marketable Securities to be Disposed - - Impairment Losses on Assets Held for Sale and Associated with Discontinued Operations - - is subtracted from the Bank’s profit before tax of TRL 1.662.354 (31 December 2017: TRL 985.808). The Bank has no discontinued ope- Other Operating Expenses 258.742 199.761 rations. Repair and Maintenance Expenses 4.907 2.483 Cleaning Costs 33.131 28.138 ı. Information on net profit/loss for the period Membership and Subscription Dues 105.483 71.205 Transportation Vehicle Expenses 9.399 8.687 ı.1. Nature, size, and recurrence of income and expense items arising from the Bank’s ordinary banking business, and nature and Operating Lease Expenses 22.437 19.498 amounts of these items if necessary to understand the Bank’s performance during the reporting period. Service Procurement Expenses 30.691 23.653 Heating, Lighting and Water Costs 5.481 5.492 From the conduct of its ordinary banking business, the Bank generated TRL 2.326.957 (31 December 2017: TRL 1.482.495) in interest Small Fixtures Expenses 307 109 expense and TRL 328.586 (31 December 2017: TRL 30.286) and it showed TRL 16.235 (31 December 2017: TRL 13.695) in net fee and Computer Operating Expenses 2.532 2.408 commission income. Advertisement Expenses 1.081 919 Communication Expenses 2.118 2.006 Printing Paper and Office Supplies 824 642 ı.2. Any changes in estimates concerning financial statement items that might have a material impact on loss/profit for the cur- Other Expenses 40.351 34.521 rent and subsequent periods. Loss on Sale of Assets - - Other** 56.850 18.984 There have been no changes whatsoever in the estimates made concerning financial statement items. Total 657.944 521.122 ı.3. Profit/loss pertaining to minority shares * In the current period, personnel expenses are presented separately in the financial statements and they are not included in other operating expenses.

** As of 31 December 2018, as of 31 December 2018, since the union started to distribute the Bank’s insurance revenues from the insurance revenues in accordance with Article 32 of the None. Bank’s Articles of Association, the Bank’s control revenues obtained from the consultancy services provided by the Bank to local administrations and the controlled revenues obtained in 2018 and the insurance revenues amounted to TL 30.000. provision is reserved. this provision is presented under other expenses. i. Breakdown of subaccounts making at least 20% of the income statement “other” items, if they account for g. Profit/loss before taxes including profit/loss from continuing or discontinued operations: more than 10% of the income statement total: Total interest income of the Bank is TRL 2.326.957 (31 December 2017: TRL 1.482.495), net fees and commissions income amounting to The “Other operating income” item in Section Four, sub-paragraph d above and the “Other operating expenses” item in Section Four, TRL 16.235 (31 December 2017: TRL 13.695), other operating income amounts to TRL 750.383 (31 December 2017: TRL 383.321), trade sub-paragraph f above account for more than 10% of the income statement total. Information about these are provided in the same foo- losses amounting to TRL 935 (31 December 2017: TRL 1.051), interest expenses amounting to TRL 328.586 (31 December 2017: TRL tnotes. There are no “other” items that constitute more than 10% of the income statement total. 30.286), other operating expenses totaling TRL 657.944 (31 December 2017: TRL 521.122), (31 December 2017: TRL 94.165) provision for continuing and operating income is TRL 2.106.120 (31 December 2017: TRL 1.232.887). The Bank has no discontinued operations.

ğ. Provision for taxes including taxes from continuing and discontinued operations: Current tax provision for continued operations amounting to TRL 382.052 (31 December 2017: TRL 266.172) net of deferred tax income and expense from continuing operations amounting to TRL (61.714) (31 December 2017: TRL 19.093) after deduction of TRL 443.766 (31 December 2017) : TRL 247.079) Deferred tax income/expenses arising from the formation or closure of temporary differences. 178 179

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

V. Explanations and footnotes on statement of changes in shareholders’ equity VI. Explanations and Footnotes on Cash Flow Statement 1. Information on capital: 1. Explanations on the “Other” and the “Effect of change in foreign exchange rates on cash and cash equiva- As per the Bank’s governing Statute 6107, the Bank’s capital consists of 2% monthly deductions from the total shares of the tax revenues lents” items in the cash flow statement to be distributed every month by the Ministry of Finance and Iller Bank under Statute 5779 on “Allotments of General Budget Revenues to TRL 288.035 decrease (December 31, 2017: TRL 207.356 decrease) in the “Other” item shown in operating profit prior to changes in the be Allocated to Special Provincial Authorities and Municipalities” dated July 2, 2008; out of the Bank’s nominal capital of TRL 18,000,000, assets and liabilities related to the Bank’s business activities consists essentially of current expenditures (electricity, water, gas, maintenance As of December 31, 2018 TRL 14.847.536 had been paid-in as of (31 December 2017: TRL 13.122.184). and repairs, rent, advertising and announcements, stationery and office supplies, and membership fees paid to a variety of organizations).

During the reporting period, the Bank had TRL 1.725.352 ( 31 December 2017: 1,431.435 )in capital collections; TRL 1.435.614 of this TRL 45.919 decrease (31 December, 2017: TRL 205.115 decrease) in the “Other increases / decreases in assets” item included among amount, (31 December 2017: TRL 1.207.588) consisted of the 2% monthly deductions made from the total shares of the tax revenues the changes taking place in the Bank’s business activity assets and liabilities consists of prepaid taxes, goods on hand, and miscellaneous distributed every month by the Ministry of Finance and Iller Bank and TRL 289.738 consisted of 30% portion retained from the Bank’s profit receivables and payables. for 2017 to be added to the capital as per the Bank’s governing law. (31 December 2017: TRL 223.847). TRL 1.794.042 increase (December 31, 2017: TRL 444.252 increase) in the “Increases/(decreases) in other liabilities” item included among 2. Capital Reserves the changes taking place in the Bank’s business activity assets and liabilities consists essentially of general budget allotments sent to Iller Bank for distribution to municipalities and special provincial authorities during the following month, of funds that are to be transferred, of At the end of the reporting period, the Bank showed TRL 1049.144 in capital reserves; TRL 876,514 of this amount consisted of inflation prepaid interest on loans made to bank employees in amounts of up to five times their single month’s salary, and withholdings made from adjusted paid-in capital and TRL 172.630 consisted of revaluation difference on tangible assets. personnel salaries that must be paid to authorities during the following month.

3. Profit Reserves: TRL 1.435.614 (December 31, 2017: TRL 1,207.588 shown among “Net cash flow secured from financing activities” pertains to the cash capital receipts from financial activities, which Iller Bank collects within the framework of its governing law and which are not represented by shares. As the Bank beginning of the period, TRL 771.081, which is the legal reserve to the required decision of the Board of Directors with TRL 96.579 transferred from the profit for 2017 allocated to employees of the Bank profit for 2016 but could not be distributed and the legal The net effect of movements in foreign exchange rates on cash and cash equivalents increased by TRL 15.541 as of December 31, 2017 reserve to imported TRL 49.040 with period total TRL 916.700 per end reached legal reserves. (December 31, 2017: TRL 3.087 increase).. 2. Cash and cash equivalents at the beginning of the period 4. Net Profits/Loss for the Period Current Period Previous Period The profit for the current period stands at TRL 1.662.354. TRL 984.887 out of the profits for year 2017 is subject to dividend payments. Cash 1.776.855 4.741.770 Cash in Vault 215 244 5. Profits/Loss for Prior Periods Central Bank of Turkey 60 51 Paragraph 3 of Article 13 of the Law no. 6107 on ler Iller Bank Anonim Şirketi “states that el The Bank is responsible for fifty-one percent Banks 1.779.190 4.747.198 of the net profit generated by the balance sheet approved by the General Assembly; urban regeneration practices of local administrations, Rediscounts on Interest Income from Banks and Blocked Amounts in Banks (2.610) (5.723) Cash Equivalents - - map, zoning plan, infrastructure and superstructure projects and financing of construction works of these projects, it shall be used as a Interbank Money Market Placements - - grant to finance the technical and social infrastructure services of the villages carried out by the special provincial administrations or to Rediscounts on InterestI ncome from Receivables from Interbank Money Market - - support the interest arising from the financing. The procedures and principles regarding the implementation of this paragraph shall be Bank Bonds - - regulated by a regulation to be issued by the Board of Directors ” provision of TL 492.555, including 15% Income Tax Withholding, from the Interest Income Rediscounts on Bank Bonds - - 2017 profit. 1.776.855 4.741.770

3. Cash and cash equivalents at the end of the period

Current Period Previous Period

Cash 2.833.556 1.776.855 Cash in Vault 154 215 Central Bank of Turkey 63 60 Banks 2.837.295 1.779.190 Rediscounts on Interest Income from Banks and Blocked Amounts in Banks (3.956) (2.610) Cash Equivalents - - Interbank Money Market Placements - - Rediscounts on InterestI ncome from Receivables from Interbank Money Market - - Bank Bonds - - Interest Income Rediscounts on Bank Bonds - - 2.833.556 1.776.855 180 181

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

VII. Remarks on the risk group of the Bank The Bank is not included in any risk group. SECTION SIX VIII. The Bank’s domestic, foreign, off-shore branches and representative offices 1. Explanations regarding the domestic and abroad branches and representation offices of the Bank Other explanations I. Other explanations on the Bank’s activities

Number of None. Number Employees Domestic branches 19 2.533 II. Brief information on the rating assigned to the bank by international rating agencies Country of Incorporation Representative offices abroad 1- Within the framework of an agreement signed in 2013 with the international rating agency Fitch Ratings, the Bank was for the first time 2- subjected to credit rating analysis by an international credit rating agency.

3- For 2015, the Bank’s Board of Directors 25.02.2015 date and 5/77 decree with Credit Grading the (traffic) of purchases related services Total Assets Regulatory Capital in Turkey established the Capital Markets Board decision to be made by a Credit Rating Agency, one of the Authorized Rating Agencies by Foreign branch 1- is given. 2- 3- Years 2016-2017 credit rating (rating) on April 8, 2016 to receive the service Kobirate International Credit Rating and Corporate Governan- Off-shore branches 1- ce Services Inc. with two-year contract was signed. As of 25.08.2017 prepared by the Company in reports submitted to the Bank, in 2017 2- it was stated that the credit rating of our revised as follows; 3-

(*) The Bank conducts its activities throughout Turkey through its headquarters and 18 regional offices. Kobirate International Credit Rating and Corporate Rating Outlook Explanation Governance Services Inc.

Specifies the average credit quality according to the debts and other debts 2. Explanations on domestic or foreign branches or representative offices opened, closed or significant re- Long Term Foreign Currency Rating BBB- Stable of the debtor and the debtors. Meeting finan-cial liabilities is high, the risk organization undertaken by the Bank of being influenced by negative economic conditions is more. None. The highest credit quality according to the debts and other debts of the de- Long Term National Credit Rating KR AAA Stable btor and the debtors; specifies that meeting financial liabilities is very high.

The highest credit quality according to the debts and other debts of the Short Term National Credit Rating KR A-1 Stable debtor and the debtors

The probability of the Bank to be supported is very high. The supporter has the highest credit note and its supporting power is very high. The Support Note KRD-1 - supporting capacity and tendency of the local government for the whole sector is at its highest. 182 183

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

IILLER BANK, INC. IILLER BANK, INC. The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 The Non-Consolidated Financial Report For Accounting Year Ended On December 31, 2018 (Unless stated otherwise, values are denominated in TRL thousand) (Unless stated otherwise, values are denominated in TRL thousand)

SECTION SEVEN

Independent Auditor’s Report I. Disclosures about the independent auditor’s report

The Bank’s unconsolidated financial statements and footnotes as of December 31, 2018 prepared for public disclosure were indepen- dently audited by Rehber Bağımsız Denetim ve Yeminli Mali Müşavirlik AŞ. The independent audit report dated April 8, 2019 is presented in the introduction section of this report.

II. Explanations and footnotes of the independent auditor

There are no significant issues or necessary disclosures or footnotes in relation to the Bank’s operations other than those mentioned above. 184 185

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Financial Situation, Profitability and Information on Solvency Financial Situation, Profitability and Information on Solvency

Financial Situation, Profitability and Loans (Net) TRY 28.291.721 Thousand Information on Solvency Loans As a result of the activities in 2018, the Bank’s total assets increased by 28.94% and reached TRY 32,220,920 Thousand from TRY 24,988,698 Thousand. In terms of assets, loans are the second with 28,288,482 Thousand TRY and 87,80%, while the banks are the The year-end balance of the specialization loans extended to our local administrations and the non-power loans granted to the Bank’s second with 2,837,295 Thousand TRY and 8,80%. Tangible fixed assets, investment property, tax assets and other assets correspond to a personnel is 28.288.482 Thousand TL and the distribution is shown below. ratio of TRY 1.095.143 Thousand and a percentage of active items as low as 3.40%. Short Term The liabilities of the Bank are TRY 18,580,325 Thousand and 57,67%, and the shareholders’ equity is 13,640,595 Thousand TRY and 42,33%. TRL 10.014 thousand from Short-Term Specialization Loans TRY 4.415.352 Thousand of the funds in the liabilities of the balance sheet amounting to TRY 8.241.642 Thousand is to be transferred TRL 67.018 thousand from Other Short-Term Loans with Collateral to Municipalities and Special Provincial Administrations on 10 January 2019 in accordance with Law No. 5779 on the allocation of sha- TRL 77.032 thousand res from General Budget Taxes to municipalities and special provincial administrations. Shares transferred to the Bank from the budget. 679.052 Thousand TRY in accordance with Article 2 of the yayımlan Communiqué on the Amendment to the General Communiqué on General Treasury Değişiklik published in the Official Gazette dated 28 February 2108 and numbered 30346, the remaining TRY 3.147.238 Medium and Long-term belongs to the funds allocated to the Bank by the central government. TRL 26.220 thousand from Medium and Long-Term Specialization External Loans

Of the TL 3.749.683 Thousand of the borrowings, TRY 2.573.219 Thousand belongs to loans extended to local administrations by foreign TRL 25.719.881 thousand from Medium and Long-Term Specialization Loans financial institutions and TRY 1.176.434 Thousand to medium and long term loans used to provide liquidity from banks. The tax liability TRL 2.465.349 thousand from Medium and Long-Term Specialization Loans (FX) amounting to TRY 144.077 Thousand in the Bank’s liabilities belongs to the corporate tax and other taxes payable at the time of the period. TRL 28.211.450 thousand

In 2018, the Bank closed its operations with a net profit of TL 1.662.354 thousand. Receivables from Rental Transactionsr The most important income item of our Bank is TRY 2.326.957 Thousand interest income and TRY 781.247 Thousand non-interest incomes; income from real estate sales revenues, land sale revenue sharing revenues, commissions received from non-cash loans, and Iller Bank has receivables from its rental income on its real estates in the amount of TRL 3.239 thousand. expenses for consultancy, supervision and technical services expenses. Tangible, Intangible and Investment Assets Interest expense is TL 328.586 Thousand and non-interest expenses is TRY 1.117.264 Thousand and TRY 325.008 Thousand of per- sonnel expenses, TRY 452.871 Thousand, Tax expense and deferred tax expense, TRY 339.385 Thousand. consists of current expenses, These accounts are used for tracking all of Iller Bank’s real estates for its internal use as well as for investment purposes, in addition to provision expenses and other expenses. furniture, furnishings, tools, equipment, vehicles, and licensed computer software. Information about the values of these assets, their depreciation and outstanding balances is presented in the chart below. Our Bank has a strong equity structure and a high debt payment power. The Bank’s capital adequacy ratio is 46.08% and it has a strong capital structure. (Thousand TRL) Registered Active Value Depreciations Impairment Balance

Movables 12.688 5.275 - 7.413

As of 31 December, 2018; Cash and Banks Real Estate 241.417 51.502 - 189.915

Real Estate for Investment Purposes 673.989 149 425 673.415 Financial Assets (Net) TRL 2,839,526 Thousand Licensed Computer Software 3.739 2.563 - 1.176 Cash and banks showed at total of TRL 2.837.512 Thousand, which is broken down as follows. Amortized Assets TRL 2.712.861 thousand in Domestic Banks,` Movables 29.289 29.289 - - TRL 124.434 thousand in Domestic Banks (FX), Real Estate - - - - TRL 154 thousand in the Headquarters and Regional Directorates of the Bank Licensed Computer Software 15.932 15.932 - - TRL 63 thousand in Central Bank of Turkey, Movables in Inventory 4 4 - - Financial assets at fair value through profit or loss amounting to TRY 2.014 Thousand Total 977.058 104.714 425 871.919 The ratio of participation to our Bank’s capital is composed of 1.86% NİĞBAŞ Niğde Beton Sanayi ve Ticaret AS and 0,000032152% Emlak Emlak Yatırım Ortaklığı AŞ. Of the financial assets whose fair value difference is TRL 2,667 Thousand and reflected to the fair value dif- ference profit, TRL 2,547 Thousand belongs to NİĞBAŞ Niğde Beton Sanayi ve Ticaret AŞ and TRL 120 Thousand to Emlak Gayrimenkul Of the TRY 241.417 Thousand, TRY 135.853 Thousand belongs to buildings and social facilities, TRY 45.917 Thousand to lands and TL Yatırım Ortaklığı AŞ. The shares of the partnership followed in this account are traded on the ISE and a total of TRY 653 Thousand provision 59.647 Thousand to our buildings under construction. For 2017, our real estates were insured for 275 thousand TL and our securities were has been established. As of year-end, our Company has recorded a net balance of TRY 2.014 Thousand. insured for 39 thousand TL. 186 187

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Financial Situation, Profitability and Information on Solvency Financial Situation, Profitability and Information on Solvency

Tax Assets Funds

This account showed a year-end balance of TRL 35.169 thousand consisting of; In accordance with various laws, the amount of funds collected by the Bank and the funds obtained from the Bank’s partners and the year-end balance of the grant fund provided by the World Bank under the Sustainable Cities Project is 8.241.642 Thousand TRL; this amount, 35.774 Thousand TRL Deferred tax asset

(605) Thousand TRL Deferred tax liability. 7.551.339 Thousand TRL The funds allocated to the Bank 4.415.352 Thousand TRL Municipality and special provincial administration shares to be transferred before January 10, 2019,

Other Assets 1.459.576 Thousand TRL Amount transferred from the Ministry of Finance to the Bank under SUKAP project,

This account showed a year-end balance of TRL 182.585 thousand consisting of; 1.204.882 Thousand TRL Municipality and Village share grants set aside out of the Bank’s profits as per the Bank’s governing law,

249.359 Thousand TRL The amount transferred by the Presidency of Disaster and Emergency Management 29.445 Thousand TRL Receivables on forward sales of assets. 89.172 Thousand TRL Amount transferred to our Bank for infrastructure investment of İstanbul Finance Center 37.278 Thousand TRL Miscellaneous receivables; Amount transferred to the Bank within the framework of Urban In frastructure Servicesout of the 50.180 Thousand TRL Budgetof the Ministryof Environment Urban Planning, 17.104 Thousand TRL Outstanding balance of litigation and court expenses 37.231 Thousand TRL To the amount of the Solid Waste Program (CAP), Accounts of bank personnel, government agencies and private concerns, of which balances will be 13.164 Thousand TRL collected/ liquidated in future years 29.159 Thousand TRL The amount transferred to the Bank within the scope of IPA Project 3.102 Thousand TRL Letters of guarantee received for submittal to Enforcement Directorates, and there after cashed in, 4.184 Thousand TRL Dokap techical cooperative hold

439 Thousand TRL Payables by municipalities and special provincial authorities arising from insurance transactions 4.034 Thousand TRL KENT-DES’s hold,

399 Thousand TRL Utility (electricity, water, mains gas) deposits paid for Iller Bank business premises and personnel housing 2.131 Thousand TRL Amount transferred for urban transformation of high-risk areas and shanty towns, Guarantee Commissionand Discretionary Deductions Paid by the Bank on behalf of Municipalities for 6.079 Thousand TRL other funds. 947 Thousand TRL collection in the accrual period for foreign credits 11.251 Thousand TRL Grant funding from the World Bank under the Sustainable Cities Project Stocks of materials purchased and maintained in the previous years on behalf of local governments; 114.915 Thousand TRL office supplies etc held in warehouses, 679.052 Thousand TRL Funds provided by the Bank’s Shareholders Bank jointly with the Ministry of Environment and Urbanization Ministry to carry out the advance amount 78.853 Thousand TRL The Bank’s shareholders to the amount of funds provided by Municipalities and Provinces of the Special of urban renewal projects, 670.378 Thousand TRL Administration 26.401 Thousand TRL Suspense accounts (payable), 8.674 Thousand TRL The Borrower funds amounting to 9.661 Thousand TRL Prepaid expenditures and other debit accounts, and advance payments Provisions

This account showed a year-end balance of TRL 183.829 thousand consisting of;

78.244 Thousand TRL Control fund incomes and insurance incomes which cannot be distributed, and this is subject Credits Received 105.585 Thousand TRL Reserves for Employee Entitlements, The end-of-year balance of this account where the foreign currency credits secured by the Bank from Foreign Banks and Agencies, for exten- sion of credits to local governments is TRL 3.749.653 thousand consisting of;

1.176.434 Thousand TRL For medium and long term loans used to meet the liquidity needs of domestic banks, Current Tax Liability 1.244.128 Thousand TRL Credits received from World Bank within the framework of Municipal Services Project, At the end of the year, the current tax liability is TRL 144.077 Thousand. 1.167.600 Thousand TRL Credits received from Japan International Cooperation Agency. 116.300 Bin TL Payable Corporate Income Tax, 161.491 Thousand TRL Credits received from Islamic Development Bank 27.777 Bin TL Income Tax Withholding belonging to und of 51% fund, reserved from the profit. 188 189

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Financial Situation, Profitability and Information on Solvency Financial Situation, Profitability and Information on Solvency

Other Liabilities Revenues and Expenditures This account showed a year-end balance of TRL 1.321.394 thousand consisting of: The Bank’s revenues for 2018 amounted to TRY 3.108.202 Thousand and its expenses were TRL 1.445.848 Thousand and the profit after TRL 994.822 Thousand Miscellaneous Liabilities tax for the year 2018 was TRL 1.662.354 Thousand. 774.496 Thousand TRL Payment to be made to contractors and tautars belonging to other liabilities, Comparison of Revenues To the areas to be evaluated by the Ministry of Environment and Urbanization within the framework of Article 3 84.676 Thousand TRL The chart below shows Iller Bank’s revenues generated in 2018 in comparison to those in 2017. of the Banking Law, (Thousand TRL) 67.871 Thousand TRL Dividend set aside and remaining after payment of profits for years 2017, Type of Revenue 2018 2017 DIFFERENCE 40.289 Thousand TRL Final and provisional cash guarantees, Interest Income 2.326.957 1.482.495 844.462 10.923 Thousand TRL Amounts deposited as contributions of local governments for the facilities constructed by the Bank, Interest from Loans 2.161.715 1.303.197 858.518

5.837 Thousand TRL Amount deducted from rations according to the related notifications of The Ministry of Finance and Social Security Institution, Interest from Banks 157.067 171.315 -14.248 4.208 Thousand TRL Dinternal Security Fund Other Interest Revenues 8.175 7.983 192 4.056 Thousand TRL Japan International Cooperation Agency Project within the scope of the residual amount, Fees and Commissions from Loans 781.245 418.694 362.551 Fees and Commissions on Loans 14.257 9.557 4700 1.790 Thousand TRL Other debts of the Bank, Banking Services Income 4.757 5.022 -265 676 Thousand TRL Amount of premium that Groupama AŞ and Güneş Sigorta AŞ that we are agents of will receive from us, Deferred Tax Assets and Liabilities Income 9.105 20.442 1.821 TRL 326.572 Thousand to Other Foreign Resources Foreign Exchange Gains 2.733 353 2380 Profit Shares Received 10 0 10 259.706 Thousand TRL The progress payments to be made to the contractors and the amounts to be liquidated in the following year, Other Non-Interest Operating Income 750.383 383.320 367.063 The amount of installments and other transfers in accordance with the loan agreements made with local 42.792 Thousand TRL administrations via EFT, Total 3.108.202 1.901.189 1.207.013 8.625 Other payables of the Bank Thousand TRL As the chart shows, the Bank’s revenues increased by 63,49% in 2018 on a year-to-year basis. Amounts that will be kept from the guarantees of the contractors who has been determined to receive 6.481 Thousand TRL excess payment as a result of the audit related to Marmara earthquake investments and other progress Comparison of Expenses payments, shows the mounts that will be liquidated according to court order 6.346 Thousand TRL Advance commissions charged on letters of guarantee extended to municipalities The chart below shows Iller Bank’s expenses incurred in 2018 in comparison to those in 2017. 2.087 Thousand TRL Amount collected through execution Type of Revenue 2018 2017 DIFFERENCE 565 Thousand TRL Retirement bonus provision for staff to retire Interest Expenses 328.586 30.286 298.300 Interest Paid on Loans (FX) 88.303 162 88.141

Capital Interest on money market transactions 88.297 29.372 58.925 As of the end of year 2018, TRL 18,000,000 thousand is collected out of the Bank’s nominal capital of TRL 14.847.536 thousand consisting of; Fund to Interest Expense 102.200 740 101.460 Other Interest Expenses 49.786 12 49.774

12.173.648 Thousand TRL held by Municipalities and subsidiaries of municipalities, Non-interest Expenses 1.117.262 885.095 232.167 1.046.050 Thousand TRL held by Special Provincial Administrations, Personnel Expenses 325.008 287.930 37.078 Taxes and Fees 20.869 15.033 5.836 1.627.838 Thousand TRL Capital transfers from profits. Fees and Commissions Paid 2.779 884 1.895

Capital Reserves Depreciation Costs 7.249 6.802 447

This account with an end-of-year balance of TRL 1.049.144 thousand consists of Capital Reserves Arising Inflation Accounting, amoun- Foreign Exchange Losses 3.668 1.404 2.264 ting to TRL 876,514 thousand, and 172.630 thousand TRL 75% of the earnings from the sale of real estate and subsidiary shares as per Severance Benefit Provisions 10.111 7.660 2.451 sub-para graph (e), article 5 of the Corporate Income Tax Law numbered 5520. Other Provisions 30.000 94.165 -4.363

Tax Reserves 382.052 266.172 115.880 Profit Reserves Deferred Tax Asset-Liability Expenses 70.818 1.349 69.469 The year-end balance of the legal reserves allocated in accordance with the Articles of Association of our Bank is TL 916.700 Thousand, TL Other non-Interest Expenses 264.708 203.696 61.012 456.671 Thousand of the Legal Reserves is TRY Legal Reserves, TRY 92.066 Thousand of Contingent Reserves, TRY 367.808 Thousand Total 1.445.848 915.381 530.467 of the Shareholders’ Equity, 155 Thousand TL portion belongs to the amounts transferred to the legal reserves within the framework of other legislation. The chart reveals that the Bank’s expenses increased by 57,95% compared to those of 2017. 190 191

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Risk Management Policies Implemented by Risk Types Risk Management Policies Implemented by Risk Types

Risk Management Policies Implemented Per Risk Type RMD analyses are carried out on a weekly basis. Retrospective back testing is applied on a daily basis to test the reliability of the results of the models utilized. With respect to the market risk, RMD based limits are set at the Bank, within the framework of the “Risk and Authority Risk management at the Bank is carried out in accordance with the internal regulations issued by the Board of Directors of the Bank, on Limits Application Methods” published through Board of Directors resolution. the basis of the provisions of the Banking Law no. 5411, regulations, communiqués, and other pieces of legislation issued by BRSA for the execution of the said law. Interest Rate Risk The risks the Bank may incur with reference to its strategies and operations are assessed, monitored and kept under control using stra- The interest rate risk caused by the banking accounts is calculated and monitored at the Bank, to see compliance with the limits estab- tegies, policies, limits and application methods to monitor, control, and where necessary alter the risk/return structure entailed by future lished under the Risk Authority Limits Application Methods, as per the provisions of the “Regulation on the Assessment and Evaluation cash flows of the bank, as well as the charac teristics and level of its activities on the basis of the risk structure. Written policies and app- of Interest Rate Risk Caused by Banking Accounts Using the Standard Shock Method”. Furthermore, the assets and liabilities sensitive to lication methods are established to manage all the risks caused by the Bank’s operations. The Board of Directors or relevant internal sys- interest rates are compared with reference to their maturity, and interest-rate-sensitive GAP analysis is applied. tems official shall regularly assess the adequacy of these, and shall effect necessary changes. Within the framework of establishing Risk Management Policies and Application Methods of the Bank, as a minimum, the strategies regarding the Bank’s operations, compatibility with the volume, nature, and complexity of its operations, the level of risk it may assume, risk monitoring and management capacity, past Currency Risk experience and performance, the level of expertise the directors of the units carrying out the operations command in the relevant field, and The currency risk refers to the probability of suffering loss due to changes in exchange rates, with reference to the foreign currency assets the obligations stipulated in the Banking Law and other applicable regulations shall be taken into consideration. and obligations the banks have. The Bank observes the provisions of the Regulation on the Calculation and Implementation of Foreign As a rule of thumb, any risk to be taken within the frame described above should be defined and manageable. In addition, current and po- Currency Net General Position/Equity Standard Ratio by Bank son Consolidated and Non-consolidated Basis in maintaining the relation tential future impacts of the risk exposure are measured to the extent allowed by risk measurement and reporting techniques. The Bank and balance among foreign currency assets and liabilities in order to secure a foreign currency position that is in line with its shareholders’ establishes written limits for quantifiable risks arising from its activities within the frame of Article 5 of the BRSA’s Regulation on Internal equity. Currency risk regarding the foreign currency loans extended by the World Bank and JICA to municipalities shall be borne by the Systems of Banks, which limits are approved and regularly reviewed by the Board of Directors. municipalities, as per the agreements. Currency conversion losses/gains sustained on the portions of such lendings that are used by the Bank under the rubric of “Strengthening Institutional Capacity” are to be borne by the Bank. Asset and liability account items appearing at The Bank was exempted, as a response to the written request for exemption filed with BRSA from the obligations regarding the “Internal the ends of fiscal periods evaluated on the basis of the exchange rates announced by the Central Bank of Turkey (TCMB),and the exchange Capital Adequacy Evaluation Procedure (ISEDES)”preparation and submittal, it has before the BRSA as per article 43 and 48 of the “Regu- rate P/L is calculated thereon. lation on the Internal Systems and Internal Capital Adequacy Assessment Procedures”. The primary goal of the currency risk policy is to keep Foreign Currency Net General Position/ Equity Standard Ratio within legal limits Credit Risk within the frame of the Bank’s financial standing, current economic developments and recent trends in the market, while observing profi- tability and productivity. The Bank calculates and reports RMD for its foreign currency position on a daily basis. Limits concerning foreign The Bank observes best practices within the frame of BRSA regulations and restrictions, and thus ensures management of credit risk in currency risk are set and monitored within the framework of the “Risk and Authority Limits Application Methods” approved by the Board accordance with its volume, quality and complexity of its lending. As a rule of thumb, new products and services are evaluated with respect of Directors. to credit risk. The Bank legally calculates the value at credit risk within the frame- work of the Regulation on Measurement and Evaluation of Capital Adequacy of Banks issued by the BRSA. The credit risk is essentially managed so as to guarantee that it will remain above the minimum limit set for the legal capital adequacy standard ratio. The Bank submits reports on its credit risk exposure to the BRSA within Liquidity Risk the frame of applicable legislation. Liquidity risk is the risk that the maturity mismatch between the Bank’s assets and liabilities, increase in dull loans, problems in interest and principal collections, slow down in cash flow, decrease in profitability, increase in cash demand, and new cash inflows cannot meet Basel II regulations by BRSA amendments to national sub-legislation compatible with determination of compliance level of banks on sites ins- their obligations due to reasons such as decrease in cash outflows. The structural problem, which is one of the main problems of the ban- pections the “Detailed” loan risk Analysis Form “(AKRİF) January be prepared on a monthly basis starting from 2014 and Risk Management De- king system, resulting from long-term loan utilization with short-term resources, is coupled with a financial crisis and liquidity risk is the partment Winrar archive file in its own right stored in DVD media. The Bank gets related units to monitor the credits and credit lines established. most important risk factor. For this reason, the Bank’s assets and liabilities are evaluated in terms of their maturities and their proforma cash flows are determined. It is essential that liquidity surplus be covered by taking alternative returns into consideration, and that liquidity Market Risk needs are met with the most cost effective resources. PMarket risk includes the interest rate risk, stock position risk and currency risks that arise from changes in interest rates, exchange rates Pursuant to Article 4, paragraph 5, of the Regulation on the Calculation of Liquidity Coverage Ratios of Banks, for the development and and stock prices in financial markets, which are addressed individually. The Bank does not receive deposits and operatesunderarticle77 of investment banks in accordance with Decree No. 7123 dated 12/12/2016 of the Banking Regulation and Supervision Board, the conso- the Banking Lawn numbered 5411. Its banking functions, consist primarily of extending cash and non-cash credit to municipalities and to lidated and unconsolidated total and foreign currency liquidity coverage ratios are to apply to 0% until it is determined, but to continue to special provincial authorities (which are the Bank’s shareholders) against collateral consisting of allotments of general budget revenuest- report these rates to the Authority in order to determine another rate for these banks. In this context, the Bank calculates the Liquidity ransferredpursuanttoLawno.5779 and of municipal local revenues, and secondly of mediating insurance. Coverage Ratio. In accordance with the ili Regulation on Measurement and Assessment of Liquidity Adequacy of Banks, ili liquidity adequ- The Amount Subject to Market Risk at the Bank is calculated within the framework of statutory reporting, using the Standard Method on acy ratio is calculated by the Bank. a monthly basis; it is taken into consideration in the calculation of the Bank’s Capital Adequacy Standard Ratio, and is included within the grand total for Capital obligations. Operational Risk In case of calculations using the Internal Method, on the other hand, the Risk Exposed Value (RMD) estimates are made on a daily basis Operational risk refers to the possibility of loss resulting from inadequate or failed internal processes, people and systems or external using Parametric, Monte Carlo and Historical Simulation Methods, whereas Marginal and Incremental RMD calculations and advanced events, including legal risk. Within the framework of BRSA regulations, the Bank manages operational risk in accordance with the volu- 192 193

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Risk Management Policies Implemented by Risk Types Summary Financial Information For The Period 2014-2018 me, nature and complexity of its operations and recognizes that all operational activities and operational risk management are a process involving employees. While fulfilling its duties, authorities and responsibilities, it is essential for the Bank’s personnel to be aware of the ASSETS 2014 2015 2016 2017 2018 operational risks and to evaluate their impacts, to take necessary measures to mitigate and / or prevent the risks, and to implement their Liquid Assets 4.377.964 4.910.977 4.747.877 1.779.939 2.839.526 activities in a conscious manner.

Loans 11.477.528 12.844.980 16.227.751 22.409.958 28.288.482 The Bank’s main objective is to identify, report and evaluate risks prior to the emergence of risks in operational risk management poli- cies. Accordingly, the basic principle in operational risk management policy is to take measures to prevent the realization of the risk. The Tangible And Intangible Fixed Assets 325.924 420.213 612.574 442.720 871.919 intensification of controls on every stage of all business processes determined in the Bank constitutes the most effective policy tool in operational risk management. The amount subject to Operational Risk is calculated on an annual basis using the ın Basic Indicator Method Other Assets 115.725 214.658 255.192 356.072 220.993 ve and included in the Standard Ratio of the Capital Adequacy Ratio of the Bank. Total 16.297.141 18.430.828 21.843.394 24.988.689 32.220.920 Management of Information Systems

The purpose of the Information Systems Risk Management Policy is to determine the principles to identify, assess, monitor, control, report, LIABILITIES 2014 2015 2016 2017 2018 and manage the risks arising out of the use of information technologies, as well as the principles to constitute the basis of management of information systems used in the execution of the Bank’s operations. Received Credits 614.810 863.145 1.222.286 1.687.221 3.749.653

This policy aims to ensure effective management of information technologies, which is a critical element in maintaining the operations Funds 3.706.179 4.431.438 5.854.666 6.099.871 8.241.642 of the Bank, by considering the management of information systems as part of corporate management practices. The provisions of this Reserves And Tax Oblıgatıons 385.924 444.075 518.348 615.393 327.906 policy shall apply for the management of the information systems of the Bank, and all elements containing these systems.

In principle, the risks arising out of information technologies shall be taken into consideration within the framework of the Bank’s operati- Other Lıabılıtıes 255.345 135.108 131.220 573.410 1.321.394 onal risk management. Considering that these risks may be factors in other risks arising out of the banking operations, it is elementary to Shareholders’ Equity 11.334.883 12.5557.062 14.116.874 16.012.794 18.580.325 maintain the assessment, close monitoring and supervision within the framework of integrated risk management for the Bank.

Total 16.297.141 18.430.828 21.843.394 24.988.689 32.220.920 Information on Ratings (Rating Regarding Bank Partners) The bank does not offer banking services for the market, in enterprise and commercial settings. The majority of the credits extended by the PROFIT/LOSS 2014 2015 2016 2017 2018 bank are credits on projects. Article 13, paragraph 5 of the Bank’s Governing Law nr. 6107 states that the provision of article 7, sub-parag- raph(b), article 17, paragraph one, and provisions regarding reserves and other safeguard provisions of law no 5411 shall not apply for the Interest Revenues 903.814 1.050.568 1.211.708 1.482.495 2.326.957 Bank. In accordance with the special law and regulations governing the Bank, its portfolio structure is characterized by a low risk of default. Even though the Bank enjoys a robust collateral structure, the assets comprising the collateral for the credits extended do not fit into the Interest Expenses 1.752 127 565 30.286 328.586 collateral categories provided in Basel II criteria. Therefore, no rating process was applied regarding the credit benchmarks at the Bank. Net Interest Revenues 902.062 1.050.441 1.211.143 1.452.209 1.998.371

Risk Protection and Risk Mitigation Policies and Their Continuous Control of its Effectiveness Net Fee and Commıssıon Revenues 12.366 13.311 12.997 13.695 16.235 Related Processes Dividend Income - - - - 10 Risk Protection And Risk Reduction Policies And The Processes Regarding Continuous Controls Of The Efficiency Thereof

Foreıgn Currency Profıts/Loses(Net) 160 (91) (708) (935) In order to preclude any significant effect adverse situations which may arise during the operations of the Bank, the risk levels should, as (1051) a rule, be subject to limits compatible with the risk profile and risk tolerance. Other Operatıng Incomes 246.339 185.486 405.076 383.321 750.383 The risk limits are established with reference to the views and opinions of the General Manager, Audit Committee, and relevant Seniot Managers, and approved by the Board of Directors. The risk limits are set at levels compatible with the risk levels the Bank may assume, Total Operatıng Incomes 1.160.927 1.249.147 1.628.508 1.848.174 2.764.999 as well as its operations, the scale and complexity of its products and services. Other Operatıng Expenses 451.644 469.243 518.942 615.287 657.944 The limits are reviewed on a regular basis, and are adopted to changes in the market conditions, the Bank’s strategy and risk appetite, and is monitored at fixed intervals. Figures subject to credit risk, operational risk and market risk are calculated to determine the minimum Profits Before Tax 709.283 779.904 1.109.566 1.282.887 2.106.120 capital requirement, and the capital adequacy ratio is calculated over these figures. The Bank does not have an internal risk position, nor Tax Reserves 184.740 203.826 288.628 247.079 443.766 does it carry a position to hedge against internal risk.

Net Profıts/Loss For The Perıod 524.543 576.078 820.938 985.808 1.662.354 194 195

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

RAIN GROOVE IN VARIOUS STREETS AND ROAD CONSTRUCTION WITH LOCKED PARQUET 19 EVREŞE ÇANAKKALE OTHER INFRASTRUCTURE 02.09.2016 02.01.2018 1.365.998 Completed Works in the Sewerage Sector in the Bank Investment Program in 2018 STONE

Municipality 20 GÜMÜŞÇAY ÇANAKKALE OTHER INFRASTRUCTURE ROAD CONSTRUCTION 15.06.2016 02.01.2018 2.387.747 Number Provinces Sector Characteristics Commencement Date Completion Date Cost (TRL) Name GUMÜŞÇAY MUNICIPALITY 2 STAGE CONCRETE PARQUET LANDING STONE AND LAND 21 GÜMÜŞÇAY ÇANAKKALE OTHER INFRASTRUCTURE 12.07.2017 02.01.2018 999.931 ÇORUM (OSMANCIK) WASTEWATER STONE CONSTRUCTION 1 OSMANCIK ÇORUM SEWAGE TREATMENT PLANT AND CHANNEL 28.11.2016 05.09.2018 20.584.502 CONSTRUCTION 22 KEPEZ ÇANAKKALE OTHER INFRASTRUCTURE CONCRETE PARQUET CONCRETE BORDURE ROAD CONSTRUCTION 15.02.2017 04.01.2018 6.062.526

GÖKÇEADA (ÇANAKKALE) THE CITY CENTER OF CUMHURİYET MEYDANIAND VARIOUS TOTAL 20.584.502 23 GÖKÇEADA ÇANAKKALE OTHER INFRASTRUCTURE 12.10.2016 02.01.2018 3.495.533 CIRCULAR AND CONCRETE PARQUET CONSTRUCTION MANYAS (BALIKESİR) REGULATION OF VARIOUS STREETS IN CENTRAL AND PROVINCE 24 MANYAS BALIKESİR OTHER INFRASTRUCTURE 23.05.2016 02.01.2018 3.413.960 Completed Works in the Drinking Water Sector in the Bank Investment Program in 2018 OF 2016 PRODUCTION OF ASPHALT SERIES FOR VARIOUS STREETS AND STREETS IN THE REGION Municipality 25 YILDIRIM BURSA OTHER INFRASTRUCTURE 24.05.2016 05.01.2018 9.903.840 Number Provinces Sector Characteristics Commencement Date Completion Date Cost (TRL) OF MUNICIPALITY OF MUNICIPALITY Name THE PRODUCTION OF ASPHALT SPREAD OUT FOR VARIOUS STREETS IN THE REGION OF 26 YILDIRIM BURSA OTHER INFRASTRUCTURE 04.04.2017 05.01.2018 5.302.444 VAKFIKEBİR, MUNICIPALITY BEŞİKDÜZÜ, TRABZON, 1 PURIFICATION DRİNKİNG WATER 02.07.2010 03.01.2018 25.493.313 ÇARŞIBAŞI, GİRESUN 27 KİRAZ İZMİR OTHER INFRASTRUCTURE KİRAZ (İZMİR) MUNICIPALITY LOCKING PARQUET STONE IN 3rd GROUP NEIGHBORHOOD 17.11.2016 05.02.2018 2.317.415 YALIKÖY, EYNESİL 28 KİRAZ İZMİR OTHER INFRASTRUCTURE KİRAZ (İZMİR) MUNICIPALITY LOCKING PARQUET STONE IN 2nd GROUP NEIGHBORHOOD 17.11.2016 08.01.2018 2.629.865

TOTAL 25.493.313 29 KİRAZ İZMİR OTHER INFRASTRUCTURE KİRAZ (İZMİR) MUNICIPALITY LOCKING PARQUET STONE IN 1st GROUP NEIGHBORHOOD 10.11.2016 02.01.2018 2.657.150

DENİZLİ METROPOLITAN MUNICIPALITY CONSTRUCTION OF ART STRUCTURES IN VARIOUS 30 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 16.11.2016 02.01.2018 8.662.230 PLACES IN DENİZLİ Works Completed With Credit in 2018 in Local Administrations for Drinking Water and Other Infrastructure Sector 31 KİRAZ İZMİR OTHER INFRASTRUCTURE KİRAZ (İZMİR) 4th GROUP LOCK FLOOR CONSTRUCTION 24.11.2016 02.01.2018 2.385.341

Commen- HOT ASPHALT, ROAD AND WALKING CONSTRUCTION IN SARAJKOY AND BABADAG DISTRICT Num- Completi- 32 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 01.11.2016 02.01.2018 6.297.643 Municipality Name Provinces Sector Characteristics cement Cost (TRL) OF DENIZLI METROPOLITAN MUNICIPALITY ber on Date Date DENİZLİ METROPOLİTAN BELEDİYESİ SARAYKOY, BABADAG, BULDAN VE GÜNEY CONSTRUCTION OF BSK CONCRETE ASPHALT ROAD COVERING IN ÜSKÜP (KIRKLARELİ) 33 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 30.09.2016 02.01.2018 9.999.018 1 ÜSKÜP KIRKLARELİ OTHER INFRASTRUCTURE 15.11.2016 03.01.2018 3.094.326 SAĞLIĞINDA YÜRÜTME YOLU İNŞAATI MUNICIPALITY STREETS AND STREETS 34 TAVAS DENİZLİ OTHER INFRASTRUCTURE TAVAS (DENİZLİ) MUNICIPALITY SURFACE COATİNG IN VARIOUS NEIGHBORHOOD 31.07.2017 06.02.2018 1.548.411 ROAD MAINTENANCE, REPAIR AND NEW ROAD CONSTRUCTION IN BÜYÜKÇEKMECE 2 BÜYÜKÇEKMECE İSTANBUL OTHER INFRASTRUCTURE 16.01.2017 02.01.2018 24.660.105 (İSTANBUL) DISTRICT 35 BULDAN DENİZLİ OTHER INFRASTRUCTURE BULDAN MUNICIPALITY CONCRETE BORDURE AND LOCK PARQUET STONE CONSTRUCTION 23.03.2017 08.01.2018 3.022.197 ASPHALT ROAD CONSTRUCTION OF VARIOUS STREETS OF ERENLER (SAKARYA) ŞEHZADELER MUNICIPALITY CONCRETE PARQUET AND BORDURE CONSTRUCTION IN 3 ERENLER SAKARYA OTHER INFRASTRUCTURE 08.05.2017 05.01.2018 6.817.407 36 ŞEHZADELER MANİSA OTHER INFRASTRUCTURE 27.07.2017 02.01.2018 1.792.662 MUNICIPALITY VARIOUS NEIGHBORHOODS OF OUR CITY IN 2017 SAKARYA WATER CHANNEL ŞEHZADELER (MANİSA) MUNICIPALITY CONSTRUCTION OF CONCRETE PARQUET AND 4 SAKARYA DRINKING WATER SAPANCA VARIOUS PLACES DRINKING WATER CONSTRUCTION 04.06.2015 05.01.2018 6.494.280 37 ŞEHZADELER MANİSA OTHER INFRASTRUCTURE 27.07.2017 02.01.2018 339.827 ADMINISTRATION BORDURE CONSTRUCTION IN VARIOUS NEIGHBORHOOD OF OUR CITY IN 2017 SAKARYA WATER CHANNEL ŞERBETPINARI (SAKARYA) KONMODULAR DRINKING WATER TREATMENT PLANT 5 SAKARYA DRINKING WATER 22.06.2015 03.01.2018 5.795.086 38 ÇİFTELER ESKİŞEHİR OTHER INFRASTRUCTURE DOUBLE (ESKİŞEHİR) 1st SURFACE COATING ROAD CONSTRUCTION 05.06.2017 02.01.2018 2.819.160 ADMINISTRATION CONSTRUCTION 39 DİŞLİ A.KARAHİSAR OTHER INFRASTRUCTURE DİŞLİ (AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 30.05.2017 02.01.2018 1.614.558 6 SAKARYA SAKARYA OTHER INFRASTRUCTURE HOT ASPHALT CONSTRUCTION IN VARIOUS STREETS 14.07.2017 05.01.2018 6.355.100 40 ÇAYIRBAĞ A.KARAHİSAR OTHER INFRASTRUCTURE ÇAYIRBAĞ(AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 03.02.2016 07.02.2018 1.881.223 26.09.2017 SAKARYA WATER CHANNEL 7 SAKARYA DRINKING WATER KEMALİYE (KIŞLAÇAY-BOĞAZKÖY-ÇINARDİBİ) GROUP DRINKING WATER CONSTRUCTION 14.07.2016 Termination 1.157.877 ADMINISTRATION 41 SULTANDAĞI A.KARAHİSAR OTHER INFRASTRUCTURE SULTANDAĞI (AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 08.05.2017 02.02.2018 5.137.023 Was Held 42 BAŞMAKÇI A.KARAHİSAR OTHER INFRASTRUCTURE BAŞMAKÇI(AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 28.03.2017 05.02.2018 1.670.353 8 KIRKLARELİ KIRKLARELİ OTHER INFRASTRUCTURE PINAR NEIGHBORHOOD FLOOR STONE CONSTRUCTION 09.06.2016 03.01.2018 1.482.452 SAKARYA WATER CHANNEL 43 SAKARYA DRINKING WATER KUZULUK (SAKARYA) DRINKING WATER NETWORK CONSTRUCTION 07.10.2015 03.01.2018 10.615.218 AKYAZI (SAKARYA) CARE REPAIR AND ASPHALTING CONSTRUCTION OF THE DISTRICT ADMINISTRATION 9 AKYAZI SAKARYA OTHER INFRASTRUCTURE ROADS (58,674,24 TON ASPHALT CONCRETE BINDER LAYER SPREAD OUT AND PRESSİNG 25.04.2017 04.01.2018 10.453.205 SAKARYA WATER CHANNEL INCLUDING) 44 SAKARYA DRINKING WATER KEREMALİ DRINKING WATER TRANSMISSION LINE CONSTRUCTION 28.09.2016 03.01.2018 4.317.950 ADMINISTRATION 10 BABAESKİ KIRKLARELİ OTHER INFRASTRUCTURE BABAESKI (KIRKLARELİ) MUNICIPALITY ASPHALT ROAD CONSTRUCTION 08.08.2016 04.01.2018 1.185.455 SAKARYA WATER CHANNEL GEYVE DISTRICT KÖPRÜBAŞI-BAĞLARBAŞI-AKINCI NEIGHBORHOOD DRINKING WATER 45 SAKARYA DRINKING WATER 21.07.2016 02.04.2018 4.944.248 BALIKESİR WATER BASKI KÜÇÜKKÖY - AYVALIK DRINKING WATER STEP LINE AND AVAILABLE 3.000 M3 ADMINISTRATION CONSTRUCTION 11 BALIKESİR DRINKING WATER 26.07.2016 04.01.2018 9.708.735 CHANNEL ADMINISTRATION WAREHOUSE REPLACEMENT 46 PAMUKOVA SAKARYA OTHER INFRASTRUCTURE ASPHALT CONSTRUCTION IN STREETS IN RESPONSIBILITY OF MUNICIPALITY 25.07.2016 02.04.2018 4.499.989 BALIKESİR WATER 12 BALIKESİR DRINKING WATER BASKI RESTORATİON OF DRINKING WATER STORES FOR VARIOUS CITIES 18.07.2016 05.01.2018 2.778.332 CHANNEL ADMINISTRATION 47 DURSUNBEY BALIKESİR OTHER INFRASTRUCTURE DURSUNBEY(BALIKESİR) ROAD AND / OR PAVEMENT CONSTRUCTION 20.05.2015 26.01.2018 2.376.238 BALIKESİR WATER DURSUNBEY (BALIKESİR) CONSTRUCTION OF CONCRETE FLOOR AND CONCRETE BORDURE 13 BALIKESİR DRINKING WATER BASKI İVRİNDİ GÜNGÖRMEZ LOCATION WATER TRANSMISSION LINE CONSTRUCTION 10.08.2016 05.01.2018 6.354.860 48 DURSUNBEY BALIKESİR OTHER INFRASTRUCTURE 20.04.2017 23.03.2018 3.637.516 CHANNEL ADMINISTRATION CONSTRUCTION WITH VARIOUS STREETS AND STREETS

14 ESENKÖY YALOVA OTHER INFRASTRUCTURE ESENKÖY (YALOVA) ROAD AND / OR LAND CONSTRUCTION 02.06.2017 02.02.2018 2.542.669 49 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENİZLİ METROPOLITAN MUNICIPALITY CONNECTION BRIDGE CONSTRUCTION 26.07.2016 20.04.2018 12.874.969

BURSA WATER CHANNEL BURSA WATER CANAL ADMINISTRATION (BURSA) 2016/1. REGION ASPHALT 50 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENİZLİ METROPOLITAN MUNICIPALITY ROAD CALLING CONSTRUCTION IN ÇİVRİL DISTRICT 08.09.2016 19.03.2018 8.189.840 15 BURSA OTHER INFRASTRUCTURE 19.08.2016 02.01.2018 80.027.671 ADMINISTRATION CONSTRUCTION AND REPAIR WORK DENİZLİ METROPOLITAN MUNICIPALITY ROAD CALLING CONSTRUCTION IN ACIPAYAM AND OTHER INFRASTRUCTURE BURSA WATER CHANNEL BUSKI GENERAL DIRECTORATE 2016/1 SUBSCRIBER REQUEST DRINKING WATER 51 DENİZLİ BÜYÜKŞEHİR DENİZLİ 07.09.2016 03.01.2018 7.738.587 16 BURSA DRINKING WATER 25.08.2016 04.01.2018 2.332.001 SERINHISAR DISTRICT ADMINISTRATION NETWORK CONSTRUCTION İN VARIOUS NEIGHBORHOOD DENİZLİ METROPOLITAN MUNICIPALITY HOT ASPHALT, ROAD AND LANDING WORK IN OTHER INFRASTRUCTURE BURSA WATER CHANNEL BUSKI 2016/1 DRINKING WATER REHABILITATION IN VARIOUS SEASONS AND NEW 52 DENİZLİ BÜYÜKŞEHİR DENİZLİ 28.10.2016 08.05.2018 6.168.742 17 BURSA DRINKING WATER 14.10.2016 04.01.2018 3.792.826 TAVAS AND SERINHISAR DISTRICTS ADMINISTRATION NETWORK AND TRANSMISSION LINE CONSTRUCTION 53 MERKEZEFENDİ DENİZLİ OTHER INFRASTRUCTURE MERKEZEFENDİ (DENİZLİ) MUNICIPALITY 5 th STAGE AND STREET REGULATION 13.06.2017 26.01.2018 7.865.928 18 UMURBEY ÇANAKKALE OTHER INFRASTRUCTURE CONCRETE FLOORING AND SCREEN COATING WİTH ROAD CONSTRUCTION 07.10.2016 05.02.2018 1.115.858 196 197

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

ROAD AND PAVEMENT CONSTRUCTION WORK IN VARIOUS STREETS AND STREETS IN 88 EYÜP İSTANBUL OTHER INFRASTRUCTURE 2017 EYÜP DISTRICT GENERAL ASPHALT COATING AND PATCHING WORK 26.05.2017 01.02.2018 12.414.240 54 YUNUSEMRE MANİSA OTHER INFRASTRUCTURE 14.06.2017 03.01.2018 4.742.832 MUNICIPALITY BORDER SAKARYA WATER CHANNEL 89 SAKARYA DRINKING WATER KANLIÇAY (KARAPURÇEK) DRINKING WATER TREATMENT PLANT REHABILITATION WORKS 14.12.2016 03.01.2018 863.905 DENİZLİ METROPOLITAN MUNICIPALITY PAVEMENT CONSTRUCTİON IN HONAZ, BOZKURT, ADMINISTRATION 55 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 28.09.2016 19.03.2018 9.877.653 ÇARDAK DİSTRİCTS SAKARYA WATER CHANNEL KARASU DISTRICT (SAKARYA) KURUDERE, YEŞİLKÖY NEIGHBORHOOD PARTIAL DRINKING 90 SAKARYA DRINKING WATER 12.04.2017 03.01.2018 3.389.799 DENİZLİ METROPOLITAN MUNICIPALITY ROAD CALLING CONSTRUCTION IN TAVAS, KALE ADMINISTRATION WATER CONSTRUCTION 56 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 07.09.2016 03.01.2018 11.051.079 AND BEYAĞAÇ DISTRICTS SAKARYA WATER CHANNEL GEYVE (SAKARYA) DISTRICT HIRKA, SARIGAZI, EŞME NEIGHBORHOOD DRINKING WATER 91 SAKARYA DRINKING WATER 27.04.2017 22.01.2018 1.379.401 DENIZLI METROPOLITAN MUNICIPALIT HOT ASPHALT, ROAD AND PAVEMENT WORKS IN ADMINISTRATION CONSTRUCTION 57 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 03.11.2016 03.07.2018 13.882.392 ACIPAYAM DISTRICT SAKARYA WATER CHANNEL SAKARYA WATER CHANNEL ADMINISTRATION (SAKARYA) KAYNARCA DISTRICT DRINKING 92 SAKARYA DRINKING WATER 09.02.2016 03.01.2018 10.351.785 HOT ASPHALT, ROAD AND PAVEMENT CONSTRUCTION IN DENIZLI METROPOLITAN ADMINISTRATION WATER TRANSMISSION AND NETWORK LINE CONSTRUCTION 58 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 04.11.2016 28.06.2018 16.117.968 MUNICIPALITY HONAZ AND ÇARDAK DISTRICTS 2018 SANCAKTEPE DISTRICT SARIGAZİ DISTRICT BORDURE SIDEWALK CONSTRUCTION IN 93 SANCAKTEPE İSTANBUL OTHER INFRASTRUCTURE 27.03.2018 03.01.2018 5.156.032 59 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENİZLİ BÜYÜKŞEHİR MUNICIPALITY STONE WALL CONSTRUCTION WORKS 23.05.2017 03.01.2018 4.151.761 VARIOUS STREETS

60 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENIZLI METROPOLITAN MUNICIPALITY JUNCTION CONSTRUCTION 16.05.2017 11.05.2018 4.444.893 94 BABAESKİ KIRKLARELİ OTHER INFRASTRUCTURE BABAESKI (KIRKLARELİ) MUNICIPALITY 2017 PARQUET STONE ROAD CONSTRUCTION 20.06.2017 03.01.2018 6.397.021 25.11.2018 61 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENIZLI METROPOLITAN MUNICIPALITY JUNCTION CONSTRUCTION 29.06.2017 07.06.2018 17.605.855 SAKARYA WATER CHANNEL 95 SAKARYA DRINKING WATER SAKARYA ALTERNATIVE DRINKING WATER SUPPLY AND HEPP CONSTRUCTION 03.04.2014 TASFİYE 72.657.747 ADMINISTRATION 62 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENIZLI METROPOLITAN MUNICIPALITY JUNCTION CONSTRUCTION 16.05.2017 11.05.2018 5.905.645 edildi BODRUM, MİLAS, YATAĞAN, KAVAKLIDERE, MENTEŞE DISTRICTS IN MUGLA PROVINCE 1. AND 2. 63 ODUNPAZARI ESKİŞEHİR OTHER INFRASTRUCTURE CONCRETE PAVEMENT STONE LAYING IN ROADS IN VARIOUS NEIGHBORHOOD 17.03.2017 03.01.2018 2.074.640 96 MUĞLA BÜYÜKŞEHİR MUĞLA OTHER INFRASTRUCTURE FLOOR SURFACE COATING, BITUMINOUS HOT MIXTURE COATING, PARQUET COATING AND ART 21.04.2017 02.02.2018 16.918.966 64 SÜLÜMENLİ A.KARAHİSAR OTHER INFRASTRUCTURE SÜLÜMENLİ(AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 25.05.2017 03.01.2018 1.603.030 CONSTRUCTION GÖLHİSAR (BURDUR) ROAD AND / OR PAVEMENT CONSTRUCTION CUMHURİYET STREET FIRST FLOOR AND SECOND FLOOR SURFACE COATING, BITUMINOUS HOT MIXTURE 65 GÖLHİSAR BURDUR OTHER INFRASTRUCTURE 29.05.2017 03.01.2018 378.754 ASPHALT CONSTRUCTION COATING, PARQUET COATING AND ART STRUCTURES IN MUĞLA PROVİNCE ULA, 97 MUĞLA BÜYÜKŞEHİR MUĞLA OTHER INFRASTRUCTURE 03.05.2017 07.02.2018 15.630.269 MARMARİS, DATÇA, KÖYCEĞİZ, ORTACA, DALAMAN, FETHIYE, SEYDIKEMER DISTRICTS IN 66 GÖLHİSAR BURDUR OTHER INFRASTRUCTURE GÖLHİSAR(BURDUR) ROAD AND / OR PAVEMENT CONSTRUCTION 22.08.2017 05.01.2018 1.555.004 VARIOUS NEIGHBORHOODS 67 GÖLHİSAR BURDUR OTHER INFRASTRUCTURE GÖLHİSAR(BURDUR) ROAD AND / OR PAVEMENT CONSTRUCTION 22.08.2017 09.01.2018 1.441.488 98 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE DENİZLİ B.B. BUILDING AND PAVEMENT IN BAKLAN DISTRICTS 21.10.2016 03.01.2018 8.496.094 SUPPLY AND LAYİNG of BORDURE STONE IN ISPARTA PROVINCE CENTER (ATABEY- CONSTRUCTION OF HOT ASPHALT AND LOCK PARQUETING IN DENİZLİ METROPOLITAN 68 ISPARTA İL ÖZEL İDARESİ ISPARTA OTHER INFRASTRUCTURE GELENDOST-GÖNEN-KEÇİBORLU-SENİRKENT-ULUBORLU) 1st GROUP IN THE VILLAGES 02.09.2016 05.01.2018 1.412.791 99 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 28.07.2017 15.04.2018 17.618.887 MUNICIPALITY ÇARDAK DISTRICT CONNECTED TO THE DISTRICTS OF 2016 DENIZLI METROPOLITAN MUNICIPALITY 3rd STAGE STREET ARRANGEMENT III.GRUP KİLİT PARKE VE BORDÜR TAŞI TEMİNİ VE DÖŞENMESİ IN ISPARTA PROVINCE OF 100 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 03.07.2017 30.04.2018 11.086.392 69 ISPARTA İL ÖZEL İDARESİ ISPARTA OTHER INFRASTRUCTURE 03.08.2016 05.01.2018 548.169 CONSTRUCTION AKSU-EGIRDIR-SUTCULER-Y.BADEMLI DISTRICTS DENIZLI METROPOLITAN MUNICIPALITY 3rd STAGE STREET ARRANGEMENT KONYA BÜYÜKŞEHİR BELEDİYESİ 5. BÖLGE İLÇELERİ ALTYAPI GEÇEN YOLLARIN 101 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 03.07.2017 30.04.2018 11.984.935 70 KONYA BÜYÜKŞEHİR KONYA OTHER INFRASTRUCTURE 20.06.2016 05.01.2018 4.887.659 CONSTRUCTION DÜZENLEMESİ YAPIM İŞİ DENIZLI METROPOLITAN (DENIZLI) ARBITRATION CONSTRUCTION IN VARIOUS PLACES IN 102 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 14.10.2016 10.01.2018 3.906.633 71 KONYA BÜYÜKŞEHİR KONYA OTHER INFRASTRUCTURE YAPALI -TAŞPINAR NEIGHBORHOOD ROADS CONSTRUCTION 26.08.2015 03.01.2018 2.082.431 DENIZLI PROVINCIAL BORDERS CONSTRUCTION OF CONCRETE FLOORING AND CONCRETE BORDURE STONE IN BRIDGE CONSTRUCTION WORK ON THE ROAD OF AYDIN, KÖŞK DISTRICT AND DALAMA 72 DOĞANHİSAR KONYA OTHER INFRASTRUCTURE 25.04.2017 03.01.2018 5.213.845 103 AYDIN BÜYÜKŞEHİR AYDIN OTHER INFRASTRUCTURE 17.04.2017 03.01.2018 3.701.701 DOĞANHİSAR (KONYA) CENTRAL AND 14 NEIGHBORHOOD NEIGHBORHOOD 73 DERBENT KONYA OTHER INFRASTRUCTURE DERBENT (KONYA) MUNICIPALITY PARQUET ROAD CONSTRUCTION WORKS. 07.07.2017 03.01.2018 1.111.614 ÖDEMIŞ MUNICIPALITY ÖDEMIŞ DISTRICT VARİOUS STREETS 2. STAGE CONCRETE 104 ÖDEMİŞ İZMİR OTHER INFRASTRUCTURE 27.03.2017 03.01.2018 1.841.257 PARQUET COATING WORK 74 DÜZCE DÜZCE OTHER INFRASTRUCTURE ROAD AND / OR PAVEMENT CONSTRUCTION WITH NATURAL STONE MATERIAL 09.05.2016 03.01.2018 5.263.932 SURFACE AND HOT ASPHALT CONSTRUCTION WORK ON TRANSPORTATION AND ÇORUM PROVINCIAL ADMINISTRATION MECİTÖZÜ DISTRICT 7 PIECES VILLAGE DRINKING 105 ÖDEMİŞ İZMİR OTHER INFRASTRUCTURE 28.08.2017 03.01.2018 3.283.532 75 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 07.07.2017 03.01.2018 307.214 PRODUCTION ROADS IN ODEMIŞ (IZMIR) MUNICIPALITY WATER PLANT CONSTRUCTION WORKS 106 ÇANKIRI ÇANKIRI OTHER INFRASTRUCTURE ÇANKIRI (ÇANKIRI) ROAD AND / OR PAVEMENT CONSTRUCTION 14.09.2017 03.01.2018 1.025.524 ÇORUM PROVINCIAL ADMINISTRATION, ALACA DISTRICT 5 VILLAGES DRINKING WATER 76 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 14.06.2017 03.01.2018 410.752 CONSTRUCTION 107 GÖLYAKA DÜZCE OTHER INFRASTRUCTURE GÖLYAKA (DÜZCE) ASPHALT ROAD CONSTRUCTION 24.08.2017 01.08.2018 3.776.843

CONSTRUCTION OF LOCKED PARQUET STONE LAYING FOR LOCAL AND MIDDLE ROADS OF ALACA (ÇORUM) MUNICIPALITY BORDER TREATMENT COATING TREATMENT COATING WİTH 77 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 05.10.2017 03.01.2018 153.400 108 ALACA ÇORUM OTHER INFRASTRUCTURE 13.06.2018 16.08.2018 435.184 HACIYAKUP VILLAGE IN GÖLYAKA DISTRICT ADMINISTRATION CUBE STONE AND ROAD CONSTRUCTION LOCK PAVING STONE CONSTRUCTION IN DUZCE SPECİAL ADMİNİSTRATİON CENTER 2nd KAYNAŞLI (DÜZCE) ÜÇKÖPRÜ KÖYÜ 6500 M² LOCK PAVING STONE, 1560 PIECES BORDER 78 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 20.09.2017 20.04.2018 1.047.263 109 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 02.07.2018 14.08.2018 214.070 STAGE SOUTH VILLAGES ROADS STONE CONSTRUCTION WORKS LOCK PAVING STONE CONSTRUCTION FOR THE VILLAGES OF KAYNASLI DISTRICT OF 79 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 06.10.2017 02.05.2018 737.475 110 KAYNAŞLI DÜZCE OTHER INFRASTRUCTURE KAYNAŞLI (DÜZCE) MUNICIPALITY BINDING LAYER WITH HOT ASPHALT CONSTRUCTION 13.08.2018 12.09.2018 2.608.539 DUZCE PRIVATE ADMINISTRATION CENTRAL DISTRICT KURTSUYU VILLAGE DRINKING WATER NETWORK LINE CONSTRUCTION CONSTRUCTION OF LOCKED PARQUET STONE IN THE VILLAGES OF DILCE PRIVATE 111 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 09.10.2017 18.08.2018 1.178.909 80 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 11.10.2017 19.04.2018 787.626 WORKS. ADMINISTRATION YIĞILCA DISTRICT SARIKAYALAR, REDIFLER, GÖKÇEAĞAÇ GROUP DRINKING WATER 112 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 10.10.2017 10.07.2018 1.269.676 81 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE LOCK PAVING STONE CONSTRUCTION FOR THE ROADS OF GÜMÜŞOVA DISTRICT 18.09.2017 05.04.2018 792.669 TRANSMISSION LINE CONSTRUCTION 82 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER Duzce Special Administration (Duzce) Cayagzi Village Drinking Water Construction 29.09.2017 05.04.2018 404.423 Duzce Special Administration Kaynasli District Dariiyeri Hasanbey Village Drinking Water 113 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 06.10.2017 27.07.2018 1.823.790 Network Line Renovation Works DUZCE SPECİAL ADMİNİSTRATİON of AKÇAKOCA GÖKTEPE VILLAGE DRINKING WATER 83 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 26.09.2017 03.01.2018 107.805 NETWORK LINE CONSTRUCTION PAYAS (HATAY) MUNICIPALITY PARQUET, WALL AND SEWERAGE NETWORK LINE 114 PAYAS HATAY OTHER INFRASTRUCTURE 30.04.2014 05.03.2018 9.240.114 CONSTRUCTION DUZCE PRIVATE ADMINISTRATION AKCAKOCA DISTRICT KUPLER VILLAGE DRINKING WATER 84 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 26.09.2017 10.01.2018 232.411 TRANSMISSION LINE CONSTRUCTION SAKARYA WATER CHANNEL SAKARYA WATER AND SEWERAGE ADMINISTRATION SAKARYA PROVINCE WATER LOSS 115 SAKARYA DRINKING WATER 16.06.2016 05.03.2018 25.404.264 ADMINISTRATION REDUCTION PROJECT 1. ZONE CONSTRUCTION ROAD IMPROVEMENT WORKS IN VARIOUS STREETS WITH INVESTMENT PROJECT NUMBER 85 BEYOĞLU İSTANBUL OTHER INFRASTRUCTURE 21.07.2016 17.01.2018 11.914.491 2016-114-009 INCLUDING BEYOĞLU DISTRICT LIMITS TEKİRDAĞ WATER CHANNEL 116 TEKİRDAĞ DRINKING WATER MALKARA (TEKİRDAĞ) DRINKING WATER SUPPLY CONSTRUCTION 07.06.2016 05.03.2018 3.330.720 ADMINISTRATION EYÜP (İSTANBUL) DISTRICT GİRNE STREET ÖZLEM STREET PRESTIGE STREET 86 EYÜPSULTAN İSTANBUL OTHER INFRASTRUCTURE 04.08.2017 18.05.2018 5.814.231 SAKARYA WATER CHANNEL YEŞİLYURT (SAKARYA) AKTEFEK, COLD WATER, HACIKIŞLA NEIGHBORHOOD 3rd PART CONSTRUCTION 117 SAKARYA DRINKING WATER 18.03.2016 24.10.2018 2.032.814 ADMINISTRATION DRINKING WATER SUPPLY CONSTRUCTION MALTEPE (ISTANBUL) MUNICIPALITY ASPHALT CONSTRUCTION WORK IN VARIOUS STREETS 87 MALTEPE İSTANBUL OTHER INFRASTRUCTURE 14.07.2016 03.01.2018 34.978.349 IN 2016 - 2017 198 199

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

SAKARYA WATER CHANNEL SASK (SAKARYA) BY INFRASTRUCTURE WORKS IN STREETS AND STREETS BSK (Bituminous ÇORUM PRIVATE ADMINISTRATION CENTER DISTRICT DRINKING WATER CONSTRUCTION 118 SAKARYA OTHER INFRASTRUCTURE 25.05.2018 24.10.2018 14.999.991 152 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 05.06.2017 03.01.2018 172.528 ADMINISTRATION HOT MIX) CONSTRUCTION OF ESKİKÖY, SERBAN AND ÖRENCİK VILLAGES

119 PAMUKOVA SAKARYA OTHER INFRASTRUCTURE BORDER SIDEWALK CONSTRUCTION 07.10.2016 24.04.2018 2.122.236 ÇORUM PRIVATE ADMINISTRATION SUNGURLU DISTRICTS VILLAGE DRINKING WATER 153 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 07.06.2017 03.01.2018 221.223 CONSTRUCTION BURSA BUYUKSEHIR (BURSA) STADIUM CONNECTION ROADS 2ND BRIDGE AND ROAD 120 BURSA BÜYÜKŞEHİR BURSA OTHER INFRASTRUCTURE 19.09.2016 11.11.2018 22.213.531 CONSTRUCTION 154 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER ÇORUM SPECIAL ADMINISTRATION (ÇORUM) DRİNKİNG WATER CONSTRUCTION 13.06.2017 03.01.2018 320.721 GENERAL DIRECTORATE OF BUSKI 2016/2 DRINKING WATER NETWORK REHABILITATION ÇORUM PRIVATE ADMINISTRATION SUNGURLU DISTRICT DRINKING WATER BURSA WATER CHANNEL 155 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 07.07.2017 03.01.2018 95.303 121 BURSA DRINKING WATER AND CONSTRUCTION OF NEW NETWORK AND TRANSMISSION LINE (BURSA CENTRAL 14.10.2016 26.10.2018 6.325.829 CONSTRUCTION IN YIRCE AND OYACA VILLAGES ADMINISTRATION WEST) IN VARIOUS NEIGHBORHOODS ÇORUM SPECIAL ADMINISTRATION MECİTÖZÜ DISTRICT HİSARKAVAK VILLAGE DRINKING 156 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 14.06.2017 03.01.2018 216.888 SAKARYA WATER CHANNEL SAKARYA WATER CHANNEL ADMINISTRATION (SAKARYA) INFRASTRUCTURE WORKS WATER PLANT NETWORK MODIFICATION 122 SAKARYA OTHER INFRASTRUCTURE 29.05.2017 04.05.2018 19.999.999 ADMINISTRATION REPAIRED ROAD COATINGS WORKS ÇORUM PRIVATE GOVERNMENT DODURGA DISTRICT MEHMETDEDE OBRUK VILLAGE AND 157 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 12.06.2017 03.01.2018 319.871 SAKARYA WATER CHANNEL ALPAGUT VILLAGE DRINKING WATER CONSTRUCTION 123 SAKARYA DRINKING WATER HENDEK (SAKARYA) ULUDERE GROUP DRINKING WATER 1. PART CONSTRUCTION 31.05.2017 12.06.2018 2.225.138 ADMINISTRATION CORUM PRIVATE ADMINISTRATION CENTRAL DISTRICT 4 VILLAGE DRINKING WATER PLANT 158 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 05.06.2017 03.01.2018 170.046 SAKARYA WATER CHANNEL SASKI (SAKARYA) HENDEK ULUDERE DRINKING WATER TREATMENT PLANT AND 2 VILLAGE NETWORK CONSTRUCTION 124 SAKARYA DRINKING WATER 11.07.2017 01.10.2018 2.859.633 ADMINISTRATION CONSTRUCTION CONSTRUCTION OF CONCRETE PAVEMENT STONE IN 74 VILLAGES OF BORUM, SAKARYA WATER CHANNEL CONSTRUCTION OF MEMNUNIYE (SAPANCA) KONMODULER DRINKING WATER TREATMENT 159 ÇORUM İL ÖZEL İDARESİ ÇORUM OTHER INFRASTRUCTURE BOĞAZKALE, İSKİLİP, KARGI AND SUNGURLU DISTRICTS OF ÇORUM PROVINCIAL 14.06.2017 10.04.2018 5.625.263 125 SAKARYA DRINKING WATER 20.03.2017 10.09.2018 1.934.465 ADMINISTRATION PLANT ADMINISTRATION ŞEHZADELER (MANİSA) ALPHALT, CONCRETE, LOCKED PARQUET, TREATURE AND BORDER CONSTRUCTION OF CONCRETE PAVING STONES IN 76 VILLAGES OF ÇORUM PRIVATE 126 ŞEHZADELER MANİSA OTHER INFRASTRUCTURE 23.07.2018 27.11.2018 1.379.386 CONSTRUCTION FOR VARIOUS NEIGHBORHOOD OF 2018 160 ÇORUM İL ÖZEL İDARESİ ÇORUM OTHER INFRASTRUCTURE ADMINISTRATION IN CENTRAL, DODURGA, LAÇİN, OĞUZLAR, OTTOMAN AND UĞURLUDAĞ 25.05.2017 08.06.2018 4.746.285 127 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE MAKING HOT ASPHALT AND LOCK PARQUETERS IN SERİNHİSAR DISTRICT 14.08.2017 31.05.2018 16.850.840 DISTRICTS Duzce Cumayeri AVLAYAN, ÇELİKDERE, HAMASCIK, KIZILÜZÜM, SIRTPINAR, ÜVEZBELİ, FESİH DENIZLI METROPOLITAN MUNICIPALITY 6th STAGE STREET AND STREET ARRANGEMENT 161 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 20.10.2017 312.194 128 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 20.07.2017 11.09.2018 4.996.846 YEŞİLTEPE, YENİTEPE, STONE, ORDULUKARADERE VILLAGE CONSTRUCTION 15.01.2018 WORKS LOCKED PAVING STONE CONSTRUCTION TO DUZCE PRIVATE ADMINISTRATION CENTER 1st DENIZLI METROPOLITAN MUNICIPALITY 6th STAGE STREET AND STREET ARRANGEMENT 162 DÜZCE İL ÖZEL İDARESİ DÜZCE OTHER INFRASTRUCTURE 21.09.2017 30.07.2018 1.164.307 129 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 20.07.2017 11.09.2018 9.043.087 STAGE NORTH VILLAGES ROADS WORKS DUZCE SPECIAL ADMINISTRATION GUMUSOVA DISTRICT YONGALIK VILLAGE DRINKING 130 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE MAKING HOT ASPHALT AND LOCK PARQUET IN TAVAS DISTRICT 24.08.2017 08.06.2018 9.543.753 163 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 22.09.2017 03.01.2018 167.969 WATER TRANSMISSION LINE CONSTRUCTION DENIZLI METROPOLITAN MUNICIPALITY 2nd STAGE STREET AND STREET ARRANGEMENT 131 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 13.06.2017 04.10.2018 18.664.341 AKÇAKOCA (DUZCE) DADALLI CIRCULAR GROUP VILLAGES DRINKING WATER 164 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 29.09.2017 03.01.2018 331.443 WORKS TRANSMISSION LINE CONSTRUCTION DENIZLI METROPOLITAN MUNICIPALITY 5 STAGE STREET AND STREET ARRANGEMENT 132 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 13.06.2017 25.09.2018 3.845.750 AKÇAKOCA (DUZCE) ÇİÇEKPINAR VILLAGE DRINKING WATER TRANSMISSION AND 165 DÜZCE İL ÖZEL İDARESİ DÜZCE DRINKING WATER 29.09.2017 03.01.2018 227.740 CONSTRUCTION NETWORK LINE CONSTRUCTION (09.08.2017 / 28-766 YK) DENIZLI METROPOLITAN MUNICIPALITY 4th STAGE STREET AND STREET ARRANGEMENT 133 DENİZLİ BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 13.06.2017 15.10.2018 3.301.701 166 İSKENDERUN HATAY OTHER INFRASTRUCTURE İSKENDERUN (HATAY) BITUMINOUS HOT MIX CONCRETE ASPHALT ROAD COATING 23.09.2016 18.10.2018 46.623.908 WORKS İSKENDERUN (HATAY) VARIOUS STREETS AND STREETS WITH LOCKED PAVING STONE AND SURFACE AND HOT ASPHALT COATING WORKS TO THE TRANSPORTATION AND 167 İSKENDERUN HATAY OTHER INFRASTRUCTURE 01.08.2016 14.11.2018 11.788.507 134 ÖDEMİŞ İZMİR OTHER INFRASTRUCTURE 12.07.2018 24.10.2018 1.796.921 ROAD AND PAVEMENT CONSTRUCTION PRODUCTION ROADS IN ÖDEMİŞ (İZMİR) MUNICIPALITIES TUFANBEYLİ MUNICIPALITY IN THE FIELD OF VARIOUS ROADS FOUNDATION, EMULSION 135 SALİHLİ MANİSA OTHER INFRASTRUCTURE SALİHLİ (MANİSA) ATATÜRK STREET ROAD AND PAVEMENT ARRANGEMENT 13.10.2017 25.09.2018 6.293.399 168 TUFANBEYLİ ADANA OTHER INFRASTRUCTURE 02.09.2016 03.01.2018 2.163.779 TWO LAYERS SURFACE COATING CONSTRUCTION WORKS 136 SEYDİKEMER MUĞLA OTHER INFRASTRUCTURE SEYDİKEMER (MUĞLA) ROAD AND / OR PAVEMENT CONSTRUCTION 22.08.2017 29.08.2018 10.313.485 169 BELEN HATAY OTHER INFRASTRUCTURE BELEN (HATAY) BITUMINOUS HOT MIX CONCRETE ASPHALT ROAD COATING 06.04.2017 18.11.2018 11.635.433 137 SANDIKLI A.KARAHİSAR OTHER INFRASTRUCTURE SANDIKLI (AFYONKARAHİSAR) HOT ASPHALT AND SATHI COATING 24.07.2018 26.10.2018 3.171.025 170 TARSUS MERSİN OTHER INFRASTRUCTURE TARSUS (MERSİN) CONCRETE PARQUET - BORDER SUPPLY AND LAYING CONSTRUCTION 22.03.2018 04.10.2018 6.844.593

138 KORKUTELİ ANTALYA OTHER INFRASTRUCTURE KORKUTELİ (ANTALYA) SATHİ COATING ASPHALT CONSTRUCTION 05.07.2018 19.10.2018 3.598.056 THE CONTRACT OF THE MEDITERRANEAN MUNICIPALITY OTHER INFRASTRUCTURE 139 ÇELTİKÇİ BURDUR OTHER INFRASTRUCTURE ÇELTİKÇİ (BURDUR) ROAD AND / OR PAVEMENT CONSTRUCTION 25.10.2017 02.10.2018 1.933.732 171 AKDENİZ MERSİN BITUMEN HOT ASPHALT COATING PATH AND PAVING ON ROADS AND 28.03.2018 12.09.2018 7.159.538 HOT ASPHALT SUPPLY TO THE ADMINISTRATION GÖLHİSAR (BURDUR) MUNICIPALITY DEMOCRACY AND BURDUR STREETS CONSTRUCTION 140 GÖLHİSAR BURDUR OTHER INFRASTRUCTURE 21.05.2018 28.08.2018 867.914 HATAY WATER CHANNEL WORKS 172 ADMINISTRATION HATAY DRINKING WATER ALTINÖZÜ HANYOLU GROUP POTABLE WATER CONSTRUCTION 09.10.2015 23.06.2018 3.710.324 GÖLHİSAR (BURDUR) MENDERES AND CUMHURİYET STREET CONNECTION ROAD (ALTINÖZÜ) 141 GÖLHİSAR BURDUR OTHER INFRASTRUCTURE 31.05.2018 25.09.2018 441.089 CONSTRUCTION WORKS REYHANLI (HATAY) INFRASTRUCTURE, SEWERAGE AND UNDERGROUND ELECTRICITY 173 REYHANLI HATAY OTHER INFRASTRUCTURE 10.05.2016 03.01.2018 6.373.699 YENİKENT (AKSARAY) MUNICIPALITY LOCKED PARQUET AND BORDER WITH ROAD CONSTRUCTION WORKS CONSTRUCTION OF CONCRETE ASPHALT SUPPLY 142 YENİKENT AKSARAY OTHER INFRASTRUCTURE 02.06.2017 11.05.2018 3.641.819 CONSTRUCTION 174 ERDEMLİ MERSİN OTHER INFRASTRUCTURE ERDEMLİ MUNICIPALITY GROUP 2 REGIONAL DESIGN OF VARIOUS ROADS 24.04.2017 03.02.2018 7.626.674 143 DÜZCE DÜZCE OTHER INFRASTRUCTURE DUZCE (Duzce) BASALT CONCRETE REMOVAL 29.04.2016 03.01.2018 2.166.680 ERDEMLİ (MERSİN) MUNICIPALITY 1. GROUP NEIGHBORHOODS, CONSTRUCTION OF 175 ERDEMLİ MERSİN OTHER INFRASTRUCTURE 21.04.2017 03.01.2018 8.345.507 144 BEYKÖY DÜZCE OTHER INFRASTRUCTURE BEYKÖY (DÜZCE) ASPHALT ROAD AND PAVEMENT CONSTRUCTION 03.08.2017 16.08.2018 6.607.225 VARIOUS ROADS

ROAD ARRANGEMENT, LOCKED PARQUET AND BORDER STONE CONSTRUCTION IN İSKENDERUN DISTRICT İSMET İNÖNÜ - TAYFUR SÖKMEN SQUARE COMBINED SOLD OUT 145 BAYAT ÇORUM OTHER INFRASTRUCTURE 04.01.2018 11.04.2018 647.409 176 HATAY BÜYÜKŞEHİR HATAY OTHER INFRASTRUCTURE 15.06.2017 07.09.2018 73.246.130 VARIOUS NEIGHBORHOOD ROADS CONSTRUCTION

146 ALACA ÇORUM OTHER INFRASTRUCTURE ALACA (ÇORUM) ROAD AND / OR PAVEMENT CONSTRUCTION 07.09.2017 13.08.2018 2.506.996 177 ALTINÖZÜ HATAY OTHER INFRASTRUCTURE ALTINÖZÜ (HATAY) MUNICIPALITY CONCRETE ASPHALT SUPPLY CONCRETE COATING 13.05.2016 23.01.2018 5.064.429 ROAD CONSTRUCTION WITH HOT MIXED ASPHALT WEAR MATERIAL IN VARIOUS 147 ALACA ÇORUM OTHER INFRASTRUCTURE ALACA (ÇORUM) MUNICIPALITY BİNDER TYPE ASPHALT CONSTRUCTION 21.05.2018 03.01.2018 6.693.196 178 CEYHAN ADANA OTHER INFRASTRUCTURE 12.07.2017 19.09.2018 8.548.365 NEIGHBORHOODS AND STREETS WITH INFRASTRUCTURE COMPLETED ÇERKEŞ MUNICIPALITY ÇARŞI CENTER AND PİRİ SANİ STREET ROAD, PAVEMENT, 148 ÇERKEŞ ÇANKIRI OTHER INFRASTRUCTURE 25.05.2018 20.09.2018 2.568.847 CEYHAN (ADANA) VARIOUS NEIGHBORHOODS ROAD CONSTRUCTION WITH LOCKED TREATMENT AND ASPHALT 179 CEYHAN ADANA OTHER INFRASTRUCTURE 27.11.2017 22.06.2018 3.562.931 CONCRETE PARQUET OTHER INFRASTRUCTURE 149 AKÇAKOCA DÜZCE AKÇAKOCA MUNICIPALITY ASPHALT COATING (PMT, WEAR, BINDER) IN VARIOUS STREETS 06.07.2018 09.10.2018 2.592.483 KAYSERİ WATER CHANNEL 180 KAYSERİ DRINKING WATER HİSARCIK-KIRANARDI DRINKING WATER SUPPLY, TRANSMISSION LINE AND FACILITIES 25.04.2016 03.01.2018 2.793.714 ÇORUM PRIVATE ADMINISTRATION CENTER DISTRICT ARPAÖZ VILLAGE DRINKING WATER ADMINISTRATION 150 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 10.04.2017 03.01.2018 10.006 DRILLING WELL OPENING KAYSERİ WATER AND SEWERAGE ADMINISTRATION (KASKİ) GENERAL DIRECTORATE KAYSERİ WATER CHANNEL CONSTRUCTION OF 5 VILLAGE DRINKING WATER CONSTRUCTION IN KARGI AND OSMANCIK 181 KAYSERİ DRINKING WATER FELAHİYE DISTRICT KAYAPINAR NEIGHBORHOOD DRINKING WATER SUPPLY 11.07.2016 03.01.2018 6.538.090 151 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 06.06.2017 03.01.2018 259.126 ADMINISTRATION DISTRICTS OF CORUM PRIVATE ADMINISTRATION CONSTRUCTION 200 201

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

YEŞILHISAR (KAYSERI) MUNICIPALITY HOT ASPHALT CONSTRUCTION WITH BITUMEN 215 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE DOĞANŞEHİR (MALATYA) BODY BRIDGE CONSTRUCTION 12.06.2017 03.01.2018 164.526 182 YEŞİLHİSAR KAYSERİ OTHER INFRASTRUCTURE 05.07.2018 18.07.2018 1.051.474 MIXTURE IN VARIOUS NEIGHBORHOODS SUPPLY AND CONSTRUCTION OF 8 CM HEIGHT LOCKED CONCRETE STONE, WATER TOMARZA (KAYSERI) VARIOUS NEIGHBORHOODS LOCK PARQUET AND BORDER LAYING 216 PALU ELAZIĞ OTHER INFRASTRUCTURE 01.11.2017 03.10.2018 697.499 183 TOMARZA KAYSERİ OTHER INFRASTRUCTURE 03.07.2017 03.01.2018 379.842 GUTTER, BORDER STONE TO VARIOUS STREETS IN PALU (ELAZIĞ) DISTRICT CENTER CONSTRUCTION 217 KARAKOÇAN ELAZIĞ OTHER INFRASTRUCTURE KARAKOÇAN (ELAZIĞ) ROAD AND / OR PAVEMENT CONSTRUCTION 11.10.2017 03.01.2018 128.620 6 CM CONCRETE LOCKING PARQUET AND 15 * 20 * 70 CM CONCRETE BORDER SUPPLY IN 184 TOMARZA KAYSERİ OTHER INFRASTRUCTURE 20.10.2017 16.01.2018 616.243 VARIOUS NEIGHBORHOODS OF TOMARZA (KAYSERI) DISTRICT 218 KARAKOÇAN ELAZIĞ OTHER INFRASTRUCTURE KARAKOÇAN (ELAZIĞ) MUNICIPALITY PAVEMENT CONSTRUCTION 27.03.2018 11.10.2018 3.187.073 SUPPLY OF 6 CM CONCRETE LOCK AND 15 * 20 * 70 CM CONCRETE BORDER SUPPLY IN ALACAKAYA ÇATAKLI VILLAGE ROAD STONE SUPPLY, TRANSPORTATION AND PIPE 185 TOMARZA KAYSERİ OTHER INFRASTRUCTURE 27.04.2018 13.09.2018 543.091 219 ELAZIĞ İL ÖZEL İDARESİ ELAZIĞ OTHER INFRASTRUCTURE 05.06.2018 07.09.2018 247.766 THE VILLAGES OF TOMARZA (KAYSERI) DISTRICTS IRRIGATION COMPACTION CONSTRUCTION WORK FOR1.STONE ASPHALT CONSTRUCTION

186 KÖSELİ KIRŞEHİR OTHER INFRASTRUCTURE KÖSELİ (KİRŞEHİR) MUNICIPALITY ROAD AND PAVEMENT CONSTRUCTION WORKS 24.08.2017 19.04.2018 736.320 ALACAKAYA INCEBAYIR VILLAGE OZUZ CHART AND UP BAHRO AVENUE 1. STONE SUPPLY 220 ELAZIĞ İL ÖZEL İDARESİ ELAZIĞ OTHER INFRASTRUCTURE FOR ASPHALT CONSTRUCTION, TRANSPORTATION AND PIPE IRRIGATION COMPACTION 25.06.2018 07.09.2018 251.741 187 KESMETEPE ADIYAMAN OTHER INFRASTRUCTURE MUNICIPALITY STREET AND STREET LOCKED PAVING STONE CONSTRUCTION 12.05.2017 03.01.2018 605.406 CONSTRUCTION WORK 188 KESMETEPE ADIYAMAN OTHER INFRASTRUCTURE CONSTRUCTION OF CONCRETE PAVING STONE OF KESMETEPE BELTES CENTRAL STREETS 19.01.2018 22.03.2018 254.880 ELAZIĞ SPECIAL ADMINISTRATION (ELAZIĞ) ROAD AND / OR PAVEMENT CONSTRUCTION 94 221 ELAZIĞ İL ÖZEL İDARESİ ELAZIĞ OTHER INFRASTRUCTURE 20.07.2018 21.11.2018 735.211 VILLAGE ROAD (DEREBOĞAZI-KURTDERE) 189 SUVARLI ADIYAMAN OTHER INFRASTRUCTURE SUVARLI (ADIYAMAN) LOCKED PARQUET CONSTRUCTION 23.10.2017 03.01.2018 1.024.902 ROAD AND / OR PAVEMENT CONSTRUCTION 1. AND 2. FLOOR ASPHALT SURFACE COATİNG CONSTRUCTION OF ROAD, INFRASTRUCTURE AND SUPERSTRUCTURE IN VARIOUS PLACES 222 BATTALGAZİ MALATYA OTHER INFRASTRUCTURE 17.08.2017 05.03.2018 5.409.150 190 GAZİANTEP BÜYÜKŞEHİR GAZİANTEP OTHER INFRASTRUCTURE 06.10.2015 20.09.2018 498.947.122 CONSTRUCTION WITHIN THE LIMITS OF GAZIANTEP PROVINCE 223 BATTALGAZİ MALATYA OTHER INFRASTRUCTURE ASPHALT SURFACE COATING (BATTALGAZI / MALATYA) 04.06.2018 24.12.2018 9.731.318 191 KÂHTA ADIYAMAN DRINKING WATER KÂHTA (ADIYAMAN) DRINKING WATER PURIFICATION TESİSİ İNŞAATI YAPIM İŞİ 17.08.2016 12.04.2018 23.959.148 DARENDE GÜNERLİ, NURKUYUSU, AĞILYAZI, HİSARCIK, YENİPINAR, YAZIHAN ÇİVRİL, SUB-BASE, PLENT-MIX BASIC CONCRETE ASPHALT CONSTRUCTION WORK IN KAHTA 192 KÂHTA ADIYAMAN OTHER INFRASTRUCTURE 07.06.2018 06.09.2018 2.374.557 MALATYA WATER CHANNEL DOĞANŞEHIR, ERKENEK (KARADERE), BATTALGAZİ HİSARTEPE NEIGHBORHOODS DISTRICT CENTER VARIOUS STREETS 224 MALATYA DRINKING WATER 14.10.2016 03.01.2018 3.222.651 ADMINISTRATION CANALS AKÇADAĞ DEDEKÖY, YAZIHAN ÇİVRİL NEIGHBORHOODS DRINKING WATER LINE 193 YAYLAKONAK ADIYAMAN OTHER INFRASTRUCTURE YAYLAKONAK ILITLI PAVING STONE CONSTRUCTION 09.08.2018 01.11.2018 507.518 CONSTRUCTION MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER 194 HALFETİ ŞANLIURFA OTHER INFRASTRUCTURE HALFETİ (ŞANLIURFA) MUNICIPALITY LOCKED CONCRETE PAVING STONE CONSTRUCTION 29.06.2018 09.10.2018 7.196.681 MALATYA WATER CHANNEL 225 MALATYA DRINKING WATER CONSTRUCTION COLLECTOR FOR VARIOUS DRILLING LINE AND VARIOUS WAREHOUSE 13.10.2017 16.10.2018 10.410.943 KAHRAMANMA-RAŞ ADMINISTRATION 195 K.MARAŞ OTHER INFRASTRUCTURE KAHRAMANMARAŞ METROPOLITAN MUNICIPALITY ASPHALT PATCH CONSTRUCTION 03.03.2017 22.12.2018 6.910.805 OUTPUTS FLOWMETER AND VALVE ROOM CONSTRUCTION BÜYÜKŞEHİR MALATYA WATER CHANNEL DARENDE DISTRICT YENICE STREET 200 M3 WAREHOUSE CONSTRUCTION SUBSCRIBER 226 MALATYA DRINKING WATER 30.09.2016 03.01.2018 541.416 196 VİRANŞEHİR K.MARAŞ OTHER INFRASTRUCTURE VİRANŞEHİR (ŞANLIURFA) CONCRETE PAVING STONE FLOORING 31.05.2017 31.03.2018 4.471.300 ADMINISTRATION CONNECTION AND PURCHASE BUILDING REPAIR DRINKING WATER CONSTRUCTION

CONSTRUCTION OF CONCRETE PARQUET CONSTRUCTION OF CENTRAL AND RURAL MALATYA WATER CHANNEL MAINTENANCE AND REPAIR WORKS OF POTABLE WATER WAREHOUSE AND PURIFICATION 197 EYYÜBİYE ŞANLIURFA OTHER INFRASTRUCTURE 02.05.2017 08.05.2018 8.265.855 227 MALATYA DRINKING WATER 13.10.2016 03.01.2018 3.268.481 NEIGHBORHOOD STREETS IN EYYÜBİYE MUNICIPALITY DISTRICT BORDER ADMINISTRATION CENTERS IN MALATYA MASKİ SERVICE AREA

GAZİANTEP WATER GASKI KARTALKAYA DAM PUMP PURIFICATION STATION ENERGY SUPPLY GASKI-2 TM MALATYA WATER CHANNEL MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER 198 GAZİANTEP DRINKING WATER 20.01.2017 03.01.2018 14.186.202 228 MALATYA DRINKING WATER 06.04.2017 10.04.2018 6.609.307 CHANNEL ADMINISTRATION CONSTRUCTION ADMINISTRATION CONSTRUCTION

199 KÖSECELİ ADIYAMAN OTHER INFRASTRUCTURE KÖSECELİ (ADIYAMAN) ROAD AND / OR PAVEMENT CONSTRUCTION 27.08.2018 09.10.2018 412.292 MALATYA WATER CHANNEL MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER 229 MALATYA DRINKING WATER 22.05.2017 01.06.2018 4.621.006 ADMINISTRATION CONSTRUCTION 200 SİVEREK ŞANLIURFA OTHER INFRASTRUCTURE SİVEREK (ŞANLIURFA) CONCRETE ASPHALT ROAD COATING 02.06.2016 19.11.2018 13.284.703 MALATYA WATER CHANNEL MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER ROAD CONSTRUCTION WITH LOCKED PAVING STONE IN KOCAKÖY (DIYARBAKIR) 230 MALATYA DRINKING WATER 11.06.2018 24.10.2018 1.479.861 201 KOCAKÖY DİYARBAKIR OTHER INFRASTRUCTURE 16.08.2018 12.10.2018 707.523 ADMINISTRATION CONSTRUCTION DRILLING WELL OPENING WORKS FOR NORTH DISTRICTS MUNICIPALITY VARIOUS NEIGHBORHOOD STREETS MALATYA WATER CHANNEL KULUNCAK (MALATYA) ROAD AND / OR PAVEMENT CONSTRUCTION ROAD CONSTRUCTION 231 MALATYA DRINKING WATER ESKI MALATYA MEASURABLE SUB ZONE CONSTRUCTION 23.03.2017 20.03.2018 7.142.332 202 KULUNCAK MALATYA OTHER INFRASTRUCTURE 23.05.2018 26.10.2018 1.408.718 ADMINISTRATION WITH LOCKED PARQUET STONE IN 28 NEIGHBORHOOD MALATYA WATER CHANNEL 232 MALATYA DRINKING WATER MALATYA SEYRAN NEIGHBORHOOD MEASURABLE SUB ZONE CONSTRUCTION 17.03.2017 27.06.2018 9.243.248 MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER ADMINISTRATION MALATYA WATER CHANNEL 203 MALATYA DRINKING WATER CONSTRUCTION WİTH DRINKING WATER WAREHOUSE AND PURPOSE CENTER 20.04.2018 29.11.2018 3.105.026 ADMINISTRATION MALATYA WATER CHANNEL MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER MAINTENANCE AND REPAIR WORKS 233 MALATYA DRINKING WATER 16.01.2017 25.01.2018 2.925.233 ADMINISTRATION CONSTRUCTION ARGUVAN DISTRICTS DRINKING WATER LINE CONSTRUCTION MALATYA WATER CHANNEL ADMINISTRATION (MALATYA) DRINKING WATER MALATYA WATER CHANNEL YEŞİLYURT (MALATYA) ROAD AND / OR PAVEMENT CONSTRUCTION CONSTRUCTION OF 204 MALATYA DRINKING WATER CONSTRUCTION MALATYA PROVINCE SOUTH DISTRICTS DRILLING WELL FOR PURPOSE OF 21.03.2018 17.07.2018 1.398.259 234 YEŞİLYURT MALATYA OTHER INFRASTRUCTURE 01.12.2016 15.01.2018 9.287.995 ADMINISTRATION ROAD AND PAVEMENT FROM KEYSTONE IN VARIOUS NEIGHBORHOODS DRINKING WATER YEŞİLYURT (MALATYA) BASALT STONE PAVEMENT CONSTRUCTION IN VARIOUS OTHER INFRASTRUCTURE 235 YEŞİLYURT MALATYA OTHER INFRASTRUCTURE 15.11.2016 10.12.2018 8.222.233 205 MALATYA BÜYÜKŞEHİR MALATYA YOL VE/VEYA KALDIRIM İNŞAATI -YEŞİLYURT İLÇESİ ÇEŞİTLİ YOL KALDIRIM YAPIM İŞİ 23.07.2015 29.07.2018 14.443.907 NEIGHBORHOODS MALATYA BÜYÜKŞEHİR(MALATYA) YOL VE/VEYA KALDIRIM İNŞAATI BATTALGAZİ İLÇESİ 206 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE 02.07.2015 08.07.2018 7.781.972 236 ELAZIĞ ELAZIĞ OTHER INFRASTRUCTURE ELAZIĞ (ELAZIĞ) CAHİT DALOKAY STREET STATION JUNCTION UNDERPASS CONSTRUCTION 09.02.2017 03.01.2018 17.435.912 MALATYA İLİNA BAĞLI İLÇELER YOL KALDIRIM YAPIM İŞİ CONSTRUCTION OF ELAZIĞ (ELAZIĞ) BRIDGE JUNCTION CONSTRUCTION IN THE ORDUEVİ OTHER INFRASTRUCTURE 237 ELAZIĞ ELAZIĞ OTHER INFRASTRUCTURE 14.03.2017 03.01.2018 16.512.211 207 MALATYA BÜYÜKŞEHİR MALATYA MALATYA İLİ KAZA MAHALLELERİ ÇEŞİTLİ BOY VE EBATTA MENFEZ YAPIM İŞİ 12.04.2017 03.01.2018 1.728.933 JUNCTION BASIC MATERIAL AND ASPHALT STONE PRODUCTION FROM PUTURGE DISTRICT SERİNOVA (MUŞ) MUNICIPALITY NEIGHBORHOOD ROADS ASPHALT SURFACE COATING 238 SERİNOVA MUŞ OTHER INFRASTRUCTURE 14.09.2017 14.03.2018 1.853.601 208 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE ÖRNEKKÖY QUARRY FOR USE IN CONSTRUCTION OF VARIOUS NEIGHBORHOOD ROADS IN 28.03.2017 30.11.2018 762.725 WORKS PUTURGE AND DOGANYOL DISTRICTS ADILCEVAZ (BITLIS) MUNICIPALITY CONSTRUCTION OF CONCRETE PARQUET, BORDER, 239 ADİLCEVAZ BİTLİS OTHER INFRASTRUCTURE 01.11.2017 30.08.2018 2.108.232 209 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE KULUNCAK KIZILHISAR KECIKLER BRIDGE CONSTRUCTION 09.06.2017 03.01.2018 123.258 WATER GUTTER AND BASALT STONE PRODUCTION OF BASIC MATERIAL AND ASPHALT STONE FOR USE IN VARIOUS STREET KONUKBEKLER (MUŞ) MUNICIPALITY CONCRETE PARQUET COATING WORKS FOR MINARET 240 KONUKBEKLER MUŞ OTHER INFRASTRUCTURE 15.11.2017 03.01.2018 340.135 210 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE ROADS IN AKÇADAĞ AND DİRENDE DISTRICTS FROM ESENBEY 1A GROUP MINES IN 21.07.2017 13.09.2018 1.076.449 AND YEROLUK NEIGHBORHOOD ROADS AKÇADAĞ DISTRICT KONUKBEKLER (MUŞ) MUNICIPALITY KÖRPEAĞAÇ AND YEROLUK NEIGHBORHOOD ROADS 241 KONUKBEKLER MUŞ OTHER INFRASTRUCTURE 26.10.2017 03.01.2018 1.267.059 211 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE KULUNCAK (MALATYA) CENTRAL BRIDGE CONSTRUCTION 09.06.2017 03.01.2018 78.829 1. FLOOR SURFACE COATING WORKS

212 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE DOĞANŞEHİR (MALATYA) BERGE BRIDGE CONSTRUCTION 12.06.2017 03.01.2018 183.082 242 KONUKBEKLER MUŞ OTHER INFRASTRUCTURE KONUKBEKLER (MUŞ) MUNICIPALITY STABILIZED ROAD CONSTRUCTION 22.08.2017 03.01.2018 197.001

213 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE ÇINAR BRIDGE CONSTRUCTION IN DARENDE (MALATYA) 19.06.2017 03.01.2018 227.347 243 KONUKBEKLER MUŞ OTHER INFRASTRUCTURE KONUKBEKLER (MUŞ) MUNICIPALITY STABILIZED ROAD CONSTRUCTION-2 15.08.2017 03.01.2018 197.219

214 MALATYA BÜYÜKŞEHİR MALATYA OTHER INFRASTRUCTURE KALE (MALATYA) DISTRICT KALE NEIGHBORHOOD BRIDGE CONSTRUCTION WORKS 22.06.2017 03.01.2018 222.999 244 ERCİŞ VAN OTHER INFRASTRUCTURE ERCIS DISTRICT VARIOUS NEIGHBORHOOD ASPHALT ROAD CONSTRUCTION 29.06.2017 14.03.2018 23.436.260 202 203

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

VAN METROPOLITAN MUNICIPALITY GURPINAR DISTRICT BINDER LAYER ASPHALT TURHAL (TOKAT) MUNICIPALITY GAZİ OSMAN PAŞA AND KOVA NEIGHBORHOOD ROAD 245 VAN BÜYÜKŞEHİR VAN OTHER INFRASTRUCTURE 14.06.2017 03.01.2018 11.416.069 275 TURHAL TOKAT OTHER INFRASTRUCTURE 03.04.2017 09.05.2018 1.206.638 CONSTRUCTION FOR VARIOUS ROADS ARRANGEMENT CONSTRUCTION

VAN BÜYÜKŞEHİR MUNICIPALITY CALDIRAN DISTRICT VARIOUS NEIGHBORHOOD ROAD 276 TURHAL TOKAT OTHER INFRASTRUCTURE TURHAL (TOKAT) MUNICIPALITY ROAD ARRANGEMENT WORK IN VARIOUS STREETS 08.01.2018 25.05.2018 921.790 246 VAN BÜYÜKŞEHİR VAN OTHER INFRASTRUCTURE 21.06.2017 03.01.2018 12.829.474 ASPHALT CONSTRUCTION 277 YAZICIK TOKAT OTHER INFRASTRUCTURE YAZICIK (TOKAT) MUNICIPALITY LOCKED PAVING STONE AND BORDER CONSTRUCTION 19.10.2017 09.05.2018 2.348.128 VAN BÜYÜKŞEHİR MUNICIPALITY ÇATAK DISTRICT BILGI DISTRICT ASPHALT COATING 247 VAN BÜYÜKŞEHİR VAN OTHER INFRASTRUCTURE 23.06.2017 03.01.2018 16.835.387 ZILE (TOKAT) MUNICIPALITY ASPHALT ROAD CONSTRUCTION IN VARIOUS LOCATIONS AND PAVEMENT AND DRAINAGE WORKS 278 ZİLE TOKAT OTHER INFRASTRUCTURE 01.08.2017 03.01.2018 16.363.935 STREETS VAN BÜYÜKŞEHİR MUNICIPALITY BİNDER LAYER ASPHALT CONSTRUCTION FOR VARIOUS 248 VAN BÜYÜKŞEHİR VAN OTHER INFRASTRUCTURE 23.06.2017 03.01.2018 11.573.887 SİVAS PROVINCIAL ADMINISTRATION SARKIŞLA DISTRICT FAKILI-KILIÇCI-KAYMAK GROUP NEIGHBORHOODS OF ÖZALP DISTRICT 279 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 24.03.2017 03.01.2018 809.021 VILLAGE ROAD AND GULEREN VILLAGE ROAD BASIC / SUB-BASIC CONSTRUCTION ÖZALP (VAN) MUNICIPALITY 3RD GROUP 10 NEIGHBORHOOD LOCKED PAVING STONE 249 ÖZALP VAN OTHER INFRASTRUCTURE 18.06.2018 21.08.2018 727.237 CONSTRUCTION OF 5 PIECES OF ART STRUCTURES TO BAHARÖZÜ, KARACALAR, KARAŞAR, CONSTRUCTION WORK 280 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 15.06.2017 03.01.2018 209.516 ACIYURT VILLAGE ROADS ÖZALP (VAN) MUNICIPALITY EMEK NEIGHBORHOOD LOCKED PARQUET ROAD 250 ÖZALP VAN OTHER INFRASTRUCTURE 26.07.2018 25.09.2018 243.635 CONSTRUCTION WORK SİVAS KANGAL ALACAHAN-YENİKÖY MALATYA ROAD SEPARATION KARACAÖREN 281 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE KOCAKURT, TEKKE-DAYILI, EYMİR, BEYYURDU, SEÇENYURDU, VILLAGE ROADS BASIC 20.03.2017 03.01.2018 514.427 BITLIS (CENTER) TABANÖZÜ VILLAGE AKÇALI AVENUE CONCRETE ROAD CONSTRUCTION 251 BİTLİS İL ÖZEL İDARESİ BİTLİS OTHER INFRASTRUCTURE 15.10.2018 02.11.2018 537.987 CONSTRUCTION WORK SİVAS YILDIZELİ KONAKÖZÜ-YÜCEBABA-KALE, SARIYAR KÖYYOLU 1 PLY ASPHALT OTHER INFRASTRUCTURE 252 BİTLİS BİTLİS BITLIS (CENTRAL) MUNICIPALITY HOT ASPHALT COATING WORKS IN VARIOUS STREETS 05.07.2018 23.11.2018 1.852.482 282 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE SATHI COATING, KIRMATAŞ BASIC CONSTRUCTION STONE SUPPLY, WASHING AND 21.02.2017 03.01.2018 314.101 253 BİTLİS BİTLİS OTHER INFRASTRUCTURE BITLIS (MERKEZ) MUNICIPALITY STONE WALL CONSTRUCTION 19.11.2018 20.11.2018 423.620 TRANSPORTATION SİVAS SUŞEHRİ YELKESEN-TOPUZOĞLU, OLACAK, KIZILTAŞ-BİLEYLİ, KARAAĞAÇ-YAMAÇ, BITLIS (CENTRAL) MUNICIPALITY STREET STREETS, LADDER, RAIN CHANNEL, LOCKED 283 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 21.03.2017 03.01.2018 668.527 254 BİTLİS BİTLİS OTHER INFRASTRUCTURE 20.06.2018 28.11.2018 931.191 PAVING STONE AND CURTAIN WALL CONSTRUCTION BOYALICA VILLAGE ROADS BASED CONSTRUCTION WITH CRUSHING STONE SUBSTATION OF YILDIZELİ DISTRICT SUBAŞI-AVCIPINAR, KARACAÖREN-SÖĞÜTPINAR- TAŞLIÇAY (AĞRI) DISTRICT MUSTAFA FEVZİ ÇAKMAK STREET MIDDLE REFUGE BORDER 284 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 29.03.2018 22.06.2018 692.083 255 TAŞLIÇAY AĞRI OTHER INFRASTRUCTURE 31.05.2017 03.01.2018 1.415.542 WORK AND LIGHTING SYSTEM RENEWAL ERENLER, ÜYÜK VILLAGE ROADS IN SİVAS PROVINCE AND ASPHALT STONE SUPPLY FOUNDATION OF KIRMATAS FROM KOYULHISAR DISTRICT CUKUROBA KÖY YOLU, SAVAS SİVAS DİVRİĞİ MURSAL-ÇOKMASAT, BEYKÖY- BAYIRLI VILLAGE ROADS 1 PLY ASPHALT 285 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 11.05.2018 04.07.2018 379.206 256 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 03.07.2017 03.01.2018 537.962 SURFACE COATING WORKS STONE SUPPLY-TRANSPORT-WASHING CONSTRUCTION SİVAS DİVRİĞİ ÇAYÖZÜ ÇİMEN KARAKUZULU SUSUZÖREN ÖDEK VILLAGE ROAD VENT 286 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE BASIC CONSTRUCTION OF KILIÇDOĞAN VILLAGE ROAD OF GÜRÜN, SİVAS 16.04.2018 25.06.2018 290.251 257 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 23.06.2017 03.01.2018 227.570 CONSTRUCTION WORKS 287 ULAŞ SİVAS OTHER INFRASTRUCTURE PAVING STONE AND ROAD CONSTRUCTION IN VARIOUS STREETS 06.09.2017 03.01.2018 895.620 SIVAS ZARA KARAÇAYIR AND SÜTÜTLÜPİNAR ROADS SUPPLY OF BASIC SUBMERGENT 258 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 15.09.2017 03.01.2018 247.746 288 ULAŞ SİVAS DRINKING WATER ULAŞ (SİVAS) MUNICIPALITY WATER TRANSMISSION LINE RENOVATION WORKS 23.08.2017 03.08.2018 1.440.780 MATERIAL FROM KIRMATAŞ SİVAS ŞARKIŞLA BOZKURT İLYASHACI GROUP VİLLAGE ROAD FOUNDATION STONE SUPPLY, PAVING STONE AND ROAD CONSTRUCTION IN VARIOUS STREETS OF ULAŞ DISTRICT (2nd 259 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 31.07.2017 03.01.2018 285.145 289 ULAŞ SİVAS OTHER INFRASTRUCTURE 29.11.2017 03.01.2018 104.380 TRANSPORTATION AND STONE WASHING WORK TENDER) HOT ASPHALT AND PAVEMENT CONSTRUCTION IN THE STREETS OF LOCATIONS IN THE ART STRUCTURE CONSTRUCTION WORK TO SİVAS PROVINCE SUŞEHRİ DISTRICT AKSU- 290 PAZAR TOKAT OTHER INFRASTRUCTURE 30.06.2017 03.01.2018 1.999.924 260 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE AŞAĞIAKÖREN, KOYULHİSAR ÇANDIR-LEYKÜN, GÖKDERE-SUÇATI-KURŞUNLU VILLAGE 17.05.2018 10.09.2018 174.191 MUNICIPALITY MUNICIPALITY ROADS SIVAS PROVINCE IMRANLI DISTRICT UYANIK - ARDICALAN GRUP VILLAGE ROAD BASIC SİVAS YILDIZELİ PARTNERS ÇOBANSARAY TOPALYURT VILLAGE ROADS 1ST FLOOR 291 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE CONSTRUCTION AND ASPHALT STONE SUPPLY, TRANSPORTATION AND WASHING 05.07.2018 14.08.2018 448.371 261 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 08.06.2017 03.01.2018 1.137.338 ASPHALT SURFACE COATING WORKS CONSTRUCTION SİVAS KOYULHİSAR KADİFE VİLLAGE TARLABAŞI NEIGHBORHOOD WALLS SUŞEHRİ DIVRIGI DISTRICT OF SIVAS PROVINCE SUSUZLAR-TIRARS, KARYAĞAN, YUSUFŞEYH, 262 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 14.06.2017 03.01.2018 251.948 KESİKBAŞ AND DOWN AKÖREN VILLAGE ART STRUCTURES CONSTRUCTION WORK 292 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE ÜÇPINAR-HAPA CLASSES, AĞAÇLIGÖL, SELİMOĞLU, ESKİBEYLİ VILLAGE ROADS BASIC 11.05.2018 21.06.2018 668.043 CONSTRUCTION AND ASPHALT STONE SUPPLY HAFIK DISTRICT DUZYAYLA AND OTHER VILLAGES CRUSHING MATERIALS SUPPLY 263 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 20.03.2017 03.01.2018 465.977 SIVAS PROVINCE (KARATAS), SARKISLA (MAKSUTLU, POLATPASA), GEMEREK (KEKLICEK, TRANSPORTATION, IRRIGATION, COMPACTION WORKS 293 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 26.04.2018 17.08.2018 197.181 BULHASAN) VILLAGE ROADS ART STRUCTURE CONSTRUCTION 264 ÜZÜMÖREN TOKAT OTHER INFRASTRUCTURE ÜZÜMÖREN (TOKAT) MUNICIPALITY ASPHALT ROAD CONSTRUCTION 09.06.2017 27.11.2018 1.232.060 SİVAS GÜRÜN KONAKPINAR GÖKÇEYAZI VILLAGE ROADS 1 FLOOR ASPHALT SATHI COATING 294 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 24.03.2017 03.01.2018 411.702 265 ÜZÜMÖREN TOKAT OTHER INFRASTRUCTURE ÜZÜMÖREN (TOKAT) MUNICIPALITY ASPHALT CONSTRUCTION WORKS 21.11.2017 21.01.2018 597.749 FOR BASIC CONSTRUCTION SUPPLY WASHING AND TRANSPORTATION WORK

ART STRUCTURES CONSTRUCTION WORK TO KANGAL DISTRICT OF SİVAS ALACAHAN, VILLAGE ROADS ART STRUCTURES CONSTRUCTION TO CONSTRUCTION OF AĞLIKÇAY, 266 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 05.06.2017 03.01.2018 214.906 295 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 07.06.2017 03.01.2018 253.068 FLATCE, YEŞİLDERE, ÇATALAĞIL, SUTAŞI, SOĞUKPINAR, GÜRÜN DISTRICT VILLAGES ÇAYLICA, KARSLILAR, KORKUT, MÜSLÜMABAT YAYLA MEZRA, ZARA DISTRICT OF SİVAS ART STRUCTURE CONSTRUCTION WORK TO SİVAS PROVINCE HAFİK DISTRICT BENLİKAYA SİVAS PROVINCE GÜRÜN DISTRICT KINDIRALIK KÖY YOLU CRUSHING STONE BASIC 267 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 04.06.2018 30.07.2018 259.459 296 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 23.08.2017 03.01.2018 218.300 AND IMRANLI DISTRICT SANDAL, AŞAĞIŞEYHLİ, YOZYATAĞI VILLAGE ROADS CONSTRUCTION, STONE SUPPLY WASHING AND TRANSPORTATION WORKS SİVAS PROVINCE YILDIZELİ DISTRICT KÜMBET VILLAGE ROAD ART STRUCTURE SIVAS PROVINCE KOYULHISAR DISTRICT KIZILELMA KOY YOLU KIRMA STONE BASIC 268 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 23.07.2018 29.08.2018 141.668 297 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 23.06.2017 03.01.2018 165.200 CONSTRUCTION WORK CONSTRUCTION, STONE SUPPLY AND TRANSPORT, STONE WASHING CONSTRUCTION BEKTAŞ-AKTEPE VILLAGE ROADS OF KANGAL DISTRICT OF SİVAS FOUNDATION SIVAS ZARA DISTRICT YIKILGAN -AGAGI KOVACIK KOY YOLU ROAD CONSTRUCTION, STONE 269 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 17.08.2018 23.10.2018 478.492 298 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 10.03.2017 03.01.2018 108.398 CONSTRUCTION SUPPLY WASHING AND TRANSPORTATION WORKS CENTRAL DISTRICT OF SİVAS AKKOÇ AND KAHYALI VILLAGE ROADS ART STRUCTURE SİVAS PROVINCE KANGAL DISTRICT ŞEKERPINARI - TURNALI KÖY YOLU KIRMA TAŞTAN 270 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 09.08.2018 05.10.2018 243.207 299 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 10.07.2017 03.01.2018 381.095 CONSTRUCTION WORK BASIC SUB-BASIC CONSTRUCTION WORKS SIVAS PROVINCE KOYULHISAR DISTRICT GÜZELYURT KÖYÜ RETAINING WALL AND BALLICA 300 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE CEFOLAR MEZRASI ROAD OF ZARA, ÇAMÖZÜ KÖYÜ, SİVAS, 1 PIECE OF ART STRUCTURES 08.09.2017 03.01.2018 198.162 271 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 13.07.2018 22.10.2018 236.581 - DOLUCA VILLAGE ROADS ART STRUCTURE SİVAS PROVINCE CENTRAL DISTRICT AYLIK-ULAŞ DISTRICT BAHARÖZÜ VILLAGE ROAD 301 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 01.06.2017 03.01.2018 186.718 SİVAS IMRANLI DISTRICT CERIT GRUP VILLAGE ROAD ART STRUCTURE CONSTRUCTION 1.KAT ASPHALT SURFACE COATING WORKS 272 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 03.09.2018 17.10.2018 252.161 WORK TO SIVAS PROVINCE SARKISLA DISTRICT HARUN, GEMEREK DISTRICT KEKLICEK, 273 İMRANLI SİVAS OTHER INFRASTRUCTURE IMRANLI (SİVAS) MUNICIPALITY LOCKED PARQUET CONSTRUCTION 13.08.2018 27.11.2018 1.326.792 302 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE BULHASAN, ALTINYAYLA DISTRICT TAHTYURT, TAŞLIHÖYÜK, KIZILHÖYÜK VILLAGE ROADS 5 15.06.2017 03.01.2018 177.177 ART STRUCTURES CONSTRUCTION TURHAL (TOKAT) MUNICIPALITY EMEK NEIGHBORHOOD ROAD ARRANGEMENT 274 TURHAL TOKAT OTHER INFRASTRUCTURE 05.04.2017 03.01.2018 722.321 CONSTRUCTION SIVAS PROVINCE KOYULHISAR DISTRICT GUZELYURT VILLAGE RETAINING WALL, YENICE 303 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 30.06.2017 03.01.2018 371.717 VILLAGE REINFORCED CONCRETE GRILL 204 205

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

SİVAS AKINCILAR DISTRICT KILIÇ EKEKEK AND YÜNLÜCE GRUP VILLAGE ROAD 1. FLOOR SAMSUN WATER CHANNEL SAMSUN METROPOLITAN MUNICIPALITY AREA SERVICE AREA IN THE BASIN-KAVAK- 335 SAMSUN DRINKING WATER 17.04.2015 29.03.2018 3.068.187 304 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE BASIC BUILDING STONE FOR ASPHALT SURFACE COATING AND TRANSPORTATION, STONE 18.10.2017 03.01.2018 256.744 ADMINISTRATION LADIK-VEZIRKÖPRÜ-ASARCIK DISTRICTS OF DRIVERS WATER CONSTRUCTION WASHING SAMSUN WATER CHANNEL 336 SAMSUN DRINKING WATER BAFRA DISTRICT HACIOĞLU GROUP DRINKING WATER CONSTRUCTION 19.06.2015 03.01.2018 287.182 SİVAS SUŞEHRİ ÇATALOLUK VILLAGE ELİFLER MAHALLE AND GUNGOREN VILLAGE ROAD ADMINISTRATION 305 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 03.08.2017 03.01.2018 344.547 CONSTRUCTION WITH KIRMATAS SAMSUN BÜYÜKŞEHİR MUNICIPALITY SERVICE AREA KAVAK DISTRICT, ÇAKALLI-KAZANCILI- SAMSUN WATER CHANNEL SİVAS MERKEZ TEPEÖNÜ-ARMUTLU GURUP KÖY YOLU 1.KAT ASFALT SURFACE 337 SAMSUN DRINKING WATER AKGOL-SARAYKENT-BOGAZICI-DEGIRMENCI-CATALTEPE GROUP DRINKING WATER 09.10.2015 14.04.2018 2.022.733 306 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 19.09.2017 03.01.2018 511.614 ADMINISTRATION CONSTRUCTION CONSTRUCTION SİVAS PROVINCE AND COMPACTION OF SUBTEMEL MATERIAL TO KANGAL DISTRICT SAMSUN WATER CHANNEL BAFRA AND 19 MAY (SAMSUN) DISTRICTS DRINKING WATER CONSTRUCTION WORKS IN 307 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 28.09.2017 03.01.2018 280.734 338 SAMSUN DRINKING WATER 09.08.2016 28.06.2018 5.225.066 SACAYAĞI VILLAGE ROAD ADMINISTRATION VARIOUS TOWNS AND TOWNS SIVAS PROVINCE AKINCILAR DISTRICT ŞENBAĞLAR- DOĞANTEPE KÖYYOLU FORE PILE SAMSUN WATER CHANNEL SASKI (SAMSUN) SAMSUN KAVAK DISTRICT GÜVEN POND DRINKING-USING WATER 308 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 16.03.2018 09.07.2018 784.125 339 SAMSUN DRINKING WATER 24.06.2016 03.01.2018 3.509.753 BRIDGE CONSTRUCTION ADMINISTRATION TREATMENT PLANT CONSTRUCTION ZARA DISTRICT OF SİVAS GÖKTEPE-BECEKLİ-GÖLBAŞI-YEŞİMLİ-ATALAN VILLAGE SAMSUN WATER CHANNEL 309 SİVAS İL ÖZEL İDARESİ SİVAS OTHER INFRASTRUCTURE 27.09.2017 03.01.2018 577.954 340 SAMSUN DRINKING WATER TEKKEKÖY DISTRICTS AND ZAFERKÖY NEIGHBORHOOD DRINKING WATER CONSTRUCTION 21.01.2016 03.01.2018 732.061 ÇORAĞANDERE CENTRAL VILLAGE ROADS 1. FLOOR ASPHALT SURFACE COATING WORKS ADMINISTRATION SAMSUN WATER CHANNEL DRINKING WATER CONSTRUCTION IN VARIOUS DISTRICTS AND STREETS OF ÇARŞAMBA 310 TEKKEKÖY SAMSUN OTHER INFRASTRUCTURE CONSTRUCTION OF PARQUET, BORDER, GUTTER AND STABLE DISABLED STONE 31.03.2017 03.01.2018 2.736.653 341 SAMSUN DRINKING WATER 03.08.2016 03.01.2018 5.422.665 ADMINISTRATION AND AYVACIK (SAMSUN) DISTRICTS TEKKEKÖY (SAMSUN) MUNICIPALITY CONCRETE PARQUET, BORDER, GUTTER AND 311 TEKKEKÖY SAMSUN OTHER INFRASTRUCTURE 16.05.2018 01.11.2018 2.862.564 SURFACE COATING AND CONCRETE ROAD CONSTRUCTION IN VARIOUS NEIGHBORHOOD IN SHAKABLE STONE CONSTRUCTION 342 TERME SAMSUN OTHER INFRASTRUCTURE 26.01.2018 19.11.2018 5.168.376 TERME (SAMSUN) MUNICIPALITY 312 TEKKEKÖY SAMSUN OTHER INFRASTRUCTURE TEKKEKÖY (SAMSUN) MUNICIPALITY LINED SURFACE COATING ROAD CONSTRUCTION 07.06.2018 01.11.2018 2.775.957 ORDU WATER CHANNEL AKKUS DISTRICT DRINKING WATER SUPPLY NETWORK AND SEWERAGE LINE 343 ORDU DRINKING WATER 17.02.2016 03.01.2018 2.642.113 313 AYBASTI ORDU OTHER INFRASTRUCTURE AYBASTI (ORDU) CONCRETE COATING ROAD CONSTRUCTION 16.03.2017 03.01.2018 4.161.443 ADMINISTRATION CONSTRUCTION ORDU WATER CHANNEL ALTINORDU AND GULYALI (ORDU) DISTRICTS VARIOUS DRINKING WATER TRANSMISSION 314 ULUBEY ORDU OTHER INFRASTRUCTURE ULUBEY (ORDU) MUNICIPALITY CONCRETE ROAD CONSTRUCTION 08.10.2018 18.10.2018 463.150 344 ORDU DRINKING WATER 05.04.2017 24.04.2018 5.649.387 ADMINISTRATION LINE 315 CANİK SAMSUN OTHER INFRASTRUCTURE (YOLBAŞI, ÇUKUR AND KARAKOCA NEIGHBORHOODS) 19.07.2017 03.01.2018 2.254.586 ORDU WATER CHANNEL CONSTRUCTION OF DISTRIBUTION LINE BETWEEN VARIOUS DRINKING WATER 345 ORDU DRINKING WATER 05.04.2017 28.05.2018 4.149.781 316 CANİK SAMSUN OTHER INFRASTRUCTURE CANİK (SAMSUN) MUNICIPALITY ROAD COATING AND REPAIR WORKS IN VARIOUS STREETS 05.01.2018 07.10.2018 9.774.803 ADMINISTRATION TRANSMISSIONS AND WAREHOUSES IN PERŞEMBE DISTRICT (ORDU) İLKADIM (SAMSUN) MUNICIPALITY ASPHALT COATING APPLICATION -12 CONSTRUCTION ORDU WATER CHANNEL ALTINORDU FATSA AND UPPER REGIONS ALLOY WATER RECEPTION STRUCTURES 317 ORDU DRINKING WATER 08.07.2016 19.01.2018 4.811.079 346 İLKADIM SAMSUN OTHER INFRASTRUCTURE 07.04.2017 28.01.2018 1.238.343 ADMINISTRATION WAREHOUSE CONSTRUCTION MAINTENANCE AND REPAIR CONSTRUCTION WORKS İLKADIM (SAMSUN) MUNICIPALITY FIRÇALI CONCRETE PAVEMENT APPLICATION-5 ORDU WATER CHANNEL CONSTRUCTION OF ADDITIONAL WATER INTAKE STRUCTURES AND Ø300 TRANSMISSION 318 ORDU DRINKING WATER 21.07.2016 03.01.2018 1.943.641 347 İLKADIM SAMSUN OTHER INFRASTRUCTURE 25.05.2016 03.01.2018 1.702.018 ADMINISTRATION LINE OF KONAK LOCATION OF ULUBEY (ORDU) CONSTRUCTION WORKS ATAKUM (SAMSUN) 2016 SURFACE COATING WORKS IN VARIOUS LOCATIONS AND ORDU WATER CHANNEL CONSTRUCTION OF DRINKING WATER AND SEWAGE LINE IN SARACLI, SACA, KARŞIYAKA 319 ORDU DRINKING WATER 21.03.2017 16.02.2018 4.759.454 348 ATAKUM SAMSUN OTHER INFRASTRUCTURE 23.06.2016 03.01.2018 2.834.900 ADMINISTRATION AND ÇINARLIK NEIGHBORHOOD OF FATSA AND UNYE STREETS

ORDU WATER CHANNEL ALTINORDU AND KABADUZ (ORDU) DISTRICTS DRINKING WATER, TRANSMISSION, 349 ATAKUM SAMSUN OTHER INFRASTRUCTURE ATAKUM (SAMSUN) SURFACE COATING WORKS IN VARIOUS LOCATIONS AND STREETS 21.06.2017 03.01.2018 8.323.458 320 ORDU DRINKING WATER 21.06.2016 03.01.2018 2.980.353 ADMINISTRATION NETWORK AND SEWERAGE LINE CONSTRUCTION ASARCIK (SAMSUN) MUNICIPALITY BORDERS 10 CM REINFORCED SURFACE COATING 350 ASARCIK SAMSUN OTHER INFRASTRUCTURE 10.08.2018 19.11.2018 1.921.930 321 ÜNYE ORDU OTHER INFRASTRUCTURE ÜNYE (ORDU) CONCRETE ROAD AND CONCRETE V CHANNEL CONSTRUCTION 06.05.2016 03.01.2018 3.660.304 WORKS

ÜNYE (ORDU) MUNICIPALITY LOCKED CONCRETE PAVİNG STONE AND READY-MIXED 351 KORGAN ORDU OTHER INFRASTRUCTURE MUNICIPALITY 2nd PART CONSTRUCTION ROAD CONCRETE ROAD CONSTRUCTION 18.12.2015 03.01.2018 856.062 322 ÜNYE ORDU OTHER INFRASTRUCTURE 15.05.2017 25.01.2018 817.919 CONCRETE ROAD CONSTRUCTION 352 KORGAN ORDU OTHER INFRASTRUCTURE MUNICIPALITY 4. PART NEIGHBORHOOD ROAD CONCRETE ROAD CONSTRUCTION 28.10.2015 21.08.2018 1.216.305 323 ÜNYE ORDU OTHER INFRASTRUCTURE UNYE (ARMY) BEL. 2.ZONE CONCRETE ROAD AND CONCRETE V CHANNEL CONSTRUCTION 18.04.2017 06.02.2018 2.014.260 353 KORGAN ORDU OTHER INFRASTRUCTURE MUNICIPALITY NEIGHBORHOOD CONCRETE ROAD CONSTRUCTION 27.10.2015 03.01.2018 768.356 ORDU WATER CHANNEL CONSTRUCTION OF VARIOUS DRINKING WATER TRANSMISSION, NETWORK, WAREHOUSE, 324 ORDU DRINKING WATER 20.05.2016 03.01.2018 4.948.003 KORGAN (ORDU) MUNICIPALITY 3rd PART NEIGHBORHOOD ROAD CONCRETE ROAD ADMINISTRATION WATER INTAKE STRUCTURE AND SEWERAGE LINE IN FATSA DISTRICT 354 KORGAN ORDU OTHER INFRASTRUCTURE 28.10.2015 12.03.2018 1.236.522 CONSTRUCTION WORKS TÜRKELİ (SINOP) MUNICIPALITY CONCRETE PARQUET ROAD AND PAVEMENT 325 TÜRKELİ SİNOP OTHER INFRASTRUCTURE 03.05.2016 03.01.2018 1.854.283 SAMSUN METROPOLITAN MUNICIPALITY SOUTH REGION DISTRICTS (ASARCIK-BASZA- CONSTRUCTION WORKS 355 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE KAVAK-LADIK-VEZIRKOPRU) VARIOUS ROAD CONSTRUCTION, MAINTENANCE AND REPAIR 30.12.2014 03.01.2018 1.765.292 TÜRKELİ (SINOP) MUNICIPALITY 2nd PART CONCRETE PARQUET ROAD AND PAVEMENT SUPPLY WORKS (3rd PART ASARCIK DISTRICT) 326 TÜRKELİ SİNOP OTHER INFRASTRUCTURE 15.08.2016 03.01.2018 328.983 CONSTRUCTION WORKS SAMSUN BÜYÜKŞEHİR MUNICIPALITY CENTRAL DISTRICTS (ATAKUM-İLKADIM-CANİK- TÜRKELİ (SINOP) MUNICIPALITY CONCRETE PARQUET ROAD AND PAVEMENT 356 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE TEKKEKÖY) VARIOUS ROAD CONSTRUCTION MAINTENANCE AND REPAIR WORKS (PART 02.03.2015 03.01.2018 4.238.105 327 TÜRKELİ SİNOP OTHER INFRASTRUCTURE 22.05.2018 05.09.2018 247.918 CONSTRUCTION WORKS 4 TEKKEKÖY) SAMSUN BÜYÜKŞEHİR (SAMSUN) MUNICIPALITY SERVICE AREAS AND ALL ROADS SAMSUN METROPOLITAN MUNICIPALITY EASTERN DISTRICTS (SALIPAZARI-TERME) 328 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE RESPONSIBILITY CONSTRUCTION, MAINTENANCE, REPAIR AND CLEANING WORKS, AND 23.01.2017 03.01.2018 775.185 357 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE VARIOUS ROAD CONSTRUCTION MAINTENANCE AND REPAIR WORKS (PART 1 SALIPAZARI 02.03.2015 03.01.2018 2.157.863 PROFIT AND ICE FIGHTING WORKS (13th PART ATAKUM) DISTRICT)

SAMSUN BÜYÜKŞEHİR (SAMSUN) MUNICIPALITY SERVICE AREAS AND ALL THE ROADS 358 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE BETWEEN BAFRA DOĞANCA AND RAMSAR AREA CONCRETE ROAD COVERING 06.10.2015 03.01.2018 5.492.084 329 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE RESPONSIBILITY CONSTRUCTION, MAINTENANCE, REPAIR AND CLEANING WORKS, AND 23.01.2017 03.01.2018 778.710 SAMSUN BÜYÜKŞEHİR (SAMSUN) ÇARŞAMBA DISTRICT VARIOUS ROAD CONSTRUCTION PROFIT AND ICE FIGHTING WORKS (16TH PART TEKKEKÖY) CONSTRUCTION 359 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE 12.06.2015 03.01.2018 1.508.283 MAINTENANCE AND REPAIR WORKS SAMSUN METROPOLITAN MUNICIPALITY SERVICE AREAS AND ALL RESPONSIBILITY 330 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE 23.01.2017 03.01.2018 527.284 CENTRAL DISTRICTS (ATAKUM-İLKADIM-CANİK-TEKKEKÖY) VARIOUS ROAD CONSTRUCTION BUILDING MAINTENANCE, REPAIR AND CLEANING WORKS 360 SAMSUN BÜYÜKŞEHİR SAMSUN OTHER INFRASTRUCTURE 26.02.2015 03.01.2018 6.870.884 MAINTENANCE AND REPAIR WORKS SAMSUN WATER CHANNEL CONSTRUCTION OF POTABLE WATER IN VARIOUS TOWNS AND STREETS OF HAVZA AND 331 SAMSUN DRINKING WATER 12.08.2016 03.01.2018 2.696.352 CONSTRUCTION OF CONCRETE CLASS (bs25) c25 PUMP-FREE READY-MIX CONCRETE IN ADMINISTRATION LADIK DISTRICTS 361 HAVZA SAMSUN OTHER INFRASTRUCTURE 11.04.2017 03.01.2018 873.448 MUNICIPAL YAYLAÇATI, ERIKBELEN AND FARM QUARTERS STREETS IN HAVZA (SAMSUN) SAMSUN WATER CHANNEL HAVZA (SAMSUN) DISTRICT HAMZA STREAM, 9 STREAM AND 11 STREAMS IMPROVEMENT 332 SAMSUN DRINKING WATER 20.07.2016 17.01.2018 4.184.108 ADMINISTRATION WORK 362 ÜÇTEPE GİRESUN OTHER INFRASTRUCTURE ÜÇTEPE (GİRESUN) CONCRETE ROAD CONSTRUCTION WORKS 13.09.2017 03.01.2018 991.660 TONYA (TRABZON) KARAAĞAÇLI-MELİKŞAH GROUP DRINKING WATER MAIN SASKI SAMSUN BÜYÜKŞEHİR BEL. PARQUET COATING, CONCRETE BORDER, PEDESTRIAN 363 TRABZON BÜYÜKŞEHİR TRABZON DRINKING WATER 16.07.2012 03.01.2018 2.683.098 SAMSUN WATER CHANNEL 333 SAMSUN OTHER INFRASTRUCTURE LIFTING AND CONCRETE INSPECTION OF VARIOUS COUNTRIES AND STREETS OF 17 20.07.2016 03.01.2018 2.066.577 TRANSMISSION LINE CONSTRUCTION ADMINISTRATION DISTRICTS IN THE SERVICE AREA 364 GİRESUN İL ÖZEL İDARESİ GİRESUN DRINKING WATER KARAALİ-GÜLBURNU (GİRESUN) GROUP DRINKING WATER CONSTRUCTION 10.10.2012 03.01.2018 113.347 SAMSUN WATER CHANNEL SASKI (SAMSUN) DRINKING WATER-SEWERAGE AND REPAIR OF ROADS AND PAVEMENTS 334 SAMSUN OTHER INFRASTRUCTURE 31.07.2015 03.01.2018 740.492 ADMINISTRATION DUE TO RAINWORK WORKS 206 207

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

TRABZON BÜYÜKŞEHİR (TRABZON) ROAD AND / OR PAVEMENT CONSTRUCTION (DISTRICT BALIKESİR WATER BALIKESİR WATER SEWER (BALIKESİR) AYVALIK LALE ISLAND PASSAGE BRIDGE DRINKING 365 TRABZON BÜYÜKŞEHİR TRABZON OTHER INFRASTRUCTURE 25.08.2017 03.01.2018 652.345 401 BALIKESİR DRINKING WATER 15.03.2017 01.01.2018 2.690.259 DISTRICTS ROAD CONCRETE ROAD CONSTRUCTION WORK PART 2) CHANNEL ADMINISTRATION WATER AND SEWERAGE LINES DEPLASE CONSTRUCTION

366 TRABZON BÜYÜKŞEHİR TRABZON OTHER INFRASTRUCTURE TRABZON (MERKEZ) İLÇE MAHALLE YOLLARI BETON YOL VE KANAL İNŞ. (4. KISIM) 25.08.2017 03.01.2018 2.385.252 BALIKESİR WATER BALIKESİR WATER CHANNEL (BALIKESİR) HAVRAN PARTIAL DRINKING WATER AND 402 BALIKESİR DRINKING WATER 26.05.2017 27.04.2018 1.074.084 CHANNEL ADMINISTRATION TRABZON BÜYÜKŞEHİR MUNICIPALITY DISTRICT NEIGHBORHOOD ROAD AND / OR RAINWATER CONSTRUCTION 367 TRABZON BÜYÜKŞEHİR TRABZON OTHER INFRASTRUCTURE 25.08.2017 03.01.2018 1.065.254 PAVEMENT CONSTRUCTION BALIKESİR İVRİNDİ DISTRICT KNOBS, ÇARKACI, BÜYÜKFINDIK NEIGHBORHOOD GÖNEN BALIKESİR WATER 403 BALIKESİR DRINKING WATER CENTRAL DISTRICT AND ERDEK DISTRICT İLHAN NEIGHBORHOOD 100M3 LOT WATER 21.11.2016 01.01.2018 844.768 TRABZON METROPOLITAN MUNICIPALITY (TRABZON) ROAD AND / OR PAVEMENT CHANNEL ADMINISTRATION 368 TRABZON BÜYÜKŞEHİR TRABZON OTHER INFRASTRUCTURE 25.08.2017 03.01.2018 1.972.416 CONSTRUCTION WAREHOUSE CONSTRUCTION HOT ASPHALT ROAD CONSTRUCTION OF STABILIZED PUBLIC ROADS IN AYVALIK 369 SÜRMENE TRABZON OTHER INFRASTRUCTURE SURMENE (TRABZON) KUCUKDERE VALLEY STREETS ROADS CONCRETE COATING WORKS 20.04.2017 03.01.2018 1.731.953 404 AYVALIK BALIKESİR OTHER INFRASTRUCTURE 25.06.2015 01.01.2018 4.403.403 (BALIKESİR) CENTRAL AND NEIGHBORHOODS 370 KOZLU ZONGULDAK OTHER INFRASTRUCTURE ASPHALT ROAD COATING CONSTRUCTION WORK 10.10.2014 31.07.2018 1.309.078 405 ARMUTLU YALOVA DRINKING WATER ARMUTLU (YALOVA) DRINKING WATER CONSTRUCTION 26.09.2017 25.07.2018 2.298.578 371 DEVREK ZONGULDAK OTHER INFRASTRUCTURE DEVREK (ZONGULDAK) MUNICIPALITY CONCRETE PARQUET ROAD COATING WORKS 18.05.2018 17.10.2018 1.000.000 01.01.2018 AYDIN WATER CHANNEL 372 DEVREK ZONGULDAK OTHER INFRASTRUCTURE MUNICIPALITY ASPHALT COATING WORKS 13.04.2016 03.01.2018 1.000.000 406 AYDIN DRINKING WATER SÖKE (AYDIN) DRINKING WATER CONSTRUCTION 08.07.2013 TASFİYE 11.435.321 ADMINISTRATION (SÖKE) EDİLDİ 373 DEVREK ZONGULDAK OTHER INFRASTRUCTURE DEVREK (ZONGULDAK) ASPHALT AND CONCRETE PARQUET COATING WORKS (3RD STAGE) 30.11.2017 06.04.2018 446.851 DENİZLİ METROPOLITAN MUNICIPALITY ÇAMELİ DISTRICT ROAD PAVEMENT 374 HASANKADI BARTIN OTHER INFRASTRUCTURE MUNICIPALITY CHARTER AND ROAD COATING 02.08.2017 03.01.2018 1.500.313 407 BÜYÜKŞEHİR DENİZLİ OTHER INFRASTRUCTURE 28.09.2016 01.01.2018 8.469.965 CONSTRUCTION WORKS 375 KOZLU ZONGULDAK OTHER INFRASTRUCTURE MUNICIPALITY BRIDGE CONSTRUCTION 15.10.2015 03.01.2018 3.130.689 3. STAGE CONCRETE PARQUET STONE COVERING WORK FOR VARIOUS STREETS OF 408 ÖDEMİŞ İZMİR OTHER INFRASTRUCTURE 28.11.2017 12.10.2018 3.898.630 376 KARABÜK KARABÜK OTHER INFRASTRUCTURE KARABÜK MUNICIPALITY KANYONPARK STEEL BRIDGE CONSTRUCTION WORKS 08.10.2015 03.01.2018 4.185.786 ÖDEMİŞ DISTRICTS ABDIPASA (BARTIN) MUNICIPALITY STREET AND SQUARE ARRANGEMENT (HOT MIXED MUNICIPALITY PAYMENT DISTRICT DISTRICT STREET STREETS 1. STAGE CONCRETE 377 ABDİPAŞA BARTIN OTHER INFRASTRUCTURE 02.10.2018 23.10.2018 866.386 409 ÖDEMİŞ İZMİR OTHER INFRASTRUCTURE 24.03.2017 01.01.2018 2.410.157 ASPHALT ROAD COATING) (1ST PART) CONSTRUCTION PARQUET COATING WORK 378 DADAY KASTAMONU OTHER INFRASTRUCTURE DADAY (KASTAMONU) ROAD COATINGS (PART 1) CONSTRUCTION 10.10.2017 03.01.2018 416.908 410 AKHİSAR MANİSA OTHER INFRASTRUCTURE AKHİSAR (MANİSA) ROAD AND / OR PAVEMENT CONSTRUCTION 30.06.2017 18.05.2018 5.563.082 379 DADAY KASTAMONU OTHER INFRASTRUCTURE DADAY (KASTAMONU) ROAD COATINGS (PART 2) CONSTRUCTION 13.11.2017 03.01.2018 63.189 411 BOZDOĞAN AYDIN OTHER INFRASTRUCTURE COATING WITH LOCKED CONCRETE PARQUET 14.09.2017 10.12.2018 5.511.297 380 SİLİVRİ İSTANBUL OTHER INFRASTRUCTURE SİLİVRİ (İSTANBUL) ROAD AND / OR PAVEMENT CONSTRUCTION 28.09.2016 01.04.2018 19.324.605 AKÖREN (AFYONKARAHISAR) MUNICIPALITY VARIOUS STREETS AND STREETS ROAD 412 AKÖREN A.KARAHİSAR OTHER INFRASTRUCTURE 31.01.2018 08.08.2018 960.940 MUNICIPALITY ALTINTEPPSI, CENTRAL, TERAZİDERE AND ISMETPAŞA NEIGHBORHOOD CONSTRUCTION WORK 381 BAYRAMPAŞA İSTANBUL OTHER INFRASTRUCTURE 12.06.2017 01.01.2018 3.207.791 VARIOUS STREETS, BORDER, SIDEWALK AND SPECIAL ROAD ARRANGEMENT WORKS 413 NURİBEY A.KARAHİSAR OTHER INFRASTRUCTURE NURİBEY (AFYONKARAHİSAR) LOCKED PARQUET STONE ROAD ARRANGEMENT WORKS 25.06.2018 11.07.2018 26.570 382 HENDEK SAKARYA OTHER INFRASTRUCTURE DEK (SAKARYA) 33.000 TONS ASPHALT CONCRETE 29.05.2017 01.01.2018 4.822.810 414 ÇIKRIK A.KARAHİSAR OTHER INFRASTRUCTURE ÇIKRIK (AFYONKARAHİSAR) READY-MIX CONCRETE WİTH PAVEMENT WORKS 14.03.2018 22.06.2018 205.084 01.01.2018 383 KEŞAN EDİRNE DRINKING WATER PAŞAYİĞİT POTABLE WATER CONSTRUCTION 11.04.2016 881.642 415 GEBECELER A.KARAHİSAR OTHER INFRASTRUCTURE ROAD ARRANGEMENT WORK IN VARIOUS STREETS 10.07.2017 01.01.2018 1.863.740 FESİH 416 GEBECELER A.KARAHİSAR OTHER INFRASTRUCTURE ROAD ARRANGEMENT WORKS IN GEBECELER (AFYONKARAHİSAR) VARIOUS STREETS 14.12.2018 24.12.2018 20.919 BALIKESİR WATER BALIKESİR WATER CHANNEL (BALIKESİR) BALIKESİR RURAL NEIGHBORHOOD (AKSAKAL, 384 BALIKESİR DRINKING WATER 19.09.2016 10.02.2018 7.656.711 CHANNEL ADMINISTRATION NATURE, KİRAZLI, YEŞİLÇOMLU, KUŞCENNETİ, ERGILI) DRINKING WATER CONSTRUCTION 417 GEBECELER A.KARAHİSAR OTHER INFRASTRUCTURE ROAD ARRANGEMENT WORK IN VARIOUS STREETS OF AFGHANDS (AFYONKARAHİSAR) 03.12.2018 12.12.2018 26.008 DRINKING WATER 418 GEBECELER A.KARAHİSAR OTHER INFRASTRUCTURE GIGECELER (AFYONKARAHİSAR) ROAD CONSTRUCTION 19.04.2018 17.08.2018 1.201.805 385 EDREMİT BALIKESİR (RENEWABLE ENERGY GEOTHERMAL DRILLING WORK IN EDREMİT DISTRICT GÜRE NEIGHBORHOOD 27.12.2016 01.01.2018 1.234.570 ŞUHUT (AFYONKARHİSAR) MUNICIPALITY CONCRETE PARQUET AND BORDER STONE PRODUCTION LOANS) 419 ŞUHUT A.KARAHİSAR OTHER INFRASTRUCTURE 18.04.2018 28.09.2018 1.457.040 LAYING BALIKESİR WATER CHANNEL (BALIKESİR) ROAD COATING REPAIR AND ASPHALT PATCHING 386 SU KANAL BALIKESİR OTHER INFRASTRUCTURE 18.10.2016 01.01.2018 3.886.106 ÇAY (AFYONKARAHİSAR) DOUBLE FLOOR SURFACE COATING AND ROAD CONSTRUCTION WORK IN VARIOUS DISTRICTS -2- 420 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE 07.08.2017 24.08.2018 809.185 WITH HOT ASPHALT BALIKESİR WATER BALIKESİR WATER CHANNEL (BALIKESİR) ROAD COATING REPAIR AND ASPHALT PATCHING 387 BALIKESİR OTHER INFRASTRUCTURE 30.11.2016 18.01.2018 9.079.357 421 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE TEA (AFYONKARAHİSAR) ROAD ARRANGEMENT WITH LOCKED PAVING STONE 25.08.2017 27.07.2018 1.432.612 CHANNEL ADMINISTRATION WORK IN VARIOUS DISTRICTS (3) 422 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE ÇAY (AFYONKARAHİSAR) ROAD CONSTRUCTION WITH LOCKED PARQUET STONE (5) 29.05.2018 09.07.2018 25.771 BURSA WATER CHANNEL 2016/4 DRINKING WATER NETWORK REHABILITATION AND CONSTRUCTION OF NEW 388 BURSA DRINKING WATER 03.05.2016 01.01.2018 5.483.530 ADMINISTRATION NETWORK AND TRANSMISSION LINES IN VARIOUS NEIGHBORHOODS (ORHANGAZİ-İZNİK) 423 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE ÇAY (AFYONKARAHİSAR) ROAD CONSTRUCTION WITH LOCKED PARQUET STONE (1) 05.06.2018 27.07.2018 22.656 BURHANİYE (BALIKESİR) 100.000 M2 HOT ASPHALT CONSTRUCTION WORK IN VARIOUS 424 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE ÇAY (AFYONKARAHİSAR) LOCKED PARQUET STONE AND ROAD CONSTRUCTION (4) 07.06.2018 15.07.2018 26.196 389 BURHANİYE BALIKESİR OTHER INFRASTRUCTURE 01.08.2017 01.01.2018 1.059.251 STREETS 425 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE ÇAY (AFYONKARAHİSAR) ROAD CONSTRUCTION WITH LOCKED PARQUET STONE (3) 24.05.2018 23.07.2018 25.488 390 TERMAL YALOVA OTHER INFRASTRUCTURE ASPHALT CONSTRUCTION OF VARIOUS STREETS 25.05.2017 01.01.2018 3.509.535 426 ÇAY A.KARAHİSAR OTHER INFRASTRUCTURE ÇAY (AFYONKARAHİSAR) LOCKED PARQUET STONE AND ROAD CONSTRUCTION (2) 07.07.2018 19.07.2018 25.488 ÇANAKKALE İL ÖZEL 391 ÇANAKKALE OTHER INFRASTRUCTURE BAYRAMİÇ DISTRICTS 1. KAT ASPHALT SURFACE COATING WORKS 19.06.2018 19.09.2018 787.056 427 ODUNPAZARI ESKİŞEHİR OTHER INFRASTRUCTURE ODUNPAZARI (ESKİŞEHİR) YOLLARA VE SIDEWALKLARA ASFALT SERİLMESİ YAPIM İŞİ 22.09.2017 01.01.2018 1.278.847 İDARESİ 428 ODUNPAZARI ESKİŞEHİR OTHER INFRASTRUCTURE ODUNPAZARI (ESKİŞEHİR) ASPHALT PAVING WORKS TO ROADS AND SIDEWALKS 30.06.2017 01.01.2018 6.261.300 HAVRAN (BALIKESİR) RED WHITE COLOR 8 CM LOCKED PAVING STONE RED WHITE GRAY 392 HAVRAN BALIKESİR OTHER INFRASTRUCTURE COLORED ELIPS PAVING STONE RED COLOR (10 * 20 * 50) GRASS BORDURE, GRAY COLOR 14.07.2015 04.04.2018 928.662 429 İHSANİYE A.KARAHİSAR OTHER INFRASTRUCTURE İHSANİYE (AFYONKARAHİSAR) ROAD CONSTRUCTION WITH LOCKED PARQUET STONE 07.07.2017 01.01.2018 1.374.276 12 * 20 * 30 CHEMICAL STONE (WATER GUT AND 40 * 40 MATERIAL) HEAT) 430 İHSANİYE A.KARAHİSAR OTHER INFRASTRUCTURE İHSANİYE (AFYONKARAHİSAR) ROAD CONSTRUCTION WITH LOCKED PARQUET STONE 15.03.2018 02.04.2018 24.013 BUYUKSEHIR (BALIKESIR) AYVALIK DISTRICT LALE ISLAND CROSSING BRIDGE 431 ÖZBURUN A.KARAHİSAR OTHER INFRASTRUCTURE ÖZBURUN (AFYONKARAHİSAR) ROAD AND / OR PAVEMENT CONSTRUCTION 18.04.2017 01.01.2018 1.845.476 393 BALIKESİR BÜYÜKŞEHİR BALIKESİR OTHER INFRASTRUCTURE 06.05.2016 01.01.2018 12.643.209 CONSTRUCTION 432 SERBAN A.KARAHİSAR OTHER INFRASTRUCTURE SERBAN (AFYONKARAHİSAR) MUNICIPALITY LOCKED PARQUET STONE AND BORDER LAYING 28.09.2017 15.03.2018 498.432 CONSTRUCTION OF CONCRETE PAVEMENT STONE LAYING FOR VARIOUS STREETS IN 394 LAPSEKİ ÇANAKKALE OTHER INFRASTRUCTURE 07.07.2017 01.01.2018 1.931.363 433 ÇUKURCA KÜTAHYA DRINKING WATER ÇUKURCA (KÜTAHYA) DRINKING WATER WAREHOUSE CONSTRUCTION 07.02.2017 01.01.2018 599.508 LAPSEKI (CANAKKALE) 434 SARICAKAYA ESKİŞEHİR OTHER INFRASTRUCTURE SARICAKAYA (ESKISEHIR) ROAD AND / OR PAVEMENT CONSTRUCTION 18.08.2016 05.07.2018 535.720 395 TEŞVİKİYE YALOVA OTHER INFRASTRUCTURE INCENTIVE (YALOVA) ROAD AND / OR PAVEMENT CONSTRUCTION 20.03.2017 01.01.2018 782.486 435 SÜLÜMENLİ A.KARAHİSAR OTHER INFRASTRUCTURE SULUMENLI (AFYONKARAHISAR) MUNICIPALITY ROAD ARRANGEMENT WORKS 17.07.2018 28.08.2018 448.164 396 ÇINARCIK YALOVA OTHER INFRASTRUCTURE ÇINARCIK (YALOVA) ROAD AND / OR PAVEMENT CONSTRUCTION 10.05.2016 01.01.2018 7.781.736 436 SÜLÜMENLİ A.KARAHİSAR OTHER INFRASTRUCTURE SULUMENLI (AFYONKARAHISAR) ROAD AND / OR PAVEMENT CONSTRUCTION 27.09.2018 02.10.2018 59.000 BALIKESİR WATER 397 BALIKESİR DRINKING WATER PRINTING BANDIRMA (BALIKESİR) DRINKING WATER TRANSMISSION LINE CONSTRUCTION 12.08.2016 01.01.2018 1.930.200 CHANNEL ADMINISTRATION ÇORUM PRIVATE ADMINISTRATION İSKİLİP DISTRICT 4 VILLAGE DRINKING WATER PLANT 437 ÇORUM İL ÖZEL İDARESİ ÇORUM DRINKING WATER 07.07.2017 01.01.2018 285.025 CONSTRUCTION WORKS BALIKESİR WATER BALIKESIR PROVINCE, ALTIEYLÜL, SQUARE AND KEPSUT DISTRICTS DRINKING WATER LINE 398 BALIKESİR DRINKING WATER 14.12.2016 01.01.2018 717.742 CHANNEL ADMINISTRATION CONSTRUCTION IN VARIOUS NEIGHBORHOODS 438 ÇİLİMLİ DÜZCE OTHER INFRASTRUCTURE DUZCE NEIGHBORHOOD AND STREETS ROAD CONSTRUCTION 26.07.2017 01.01.2018 2.594.301

BALIKESİR WATER BALIKESİR PROVINCE DURSUNBEY, BİGADİÇ, SINDIRGI AND SAVAŞTEPE DISTRICTS 439 KEÇİÖREN ANKARA OTHER INFRASTRUCTURE ROAD AND / OR PAVEMENT CONSTRUCTION 27.04.2016 01.01.2018 4.877.805 399 BALIKESİR DRINKING WATER 14.12.2016 09.04.2018 792.045 CHANNEL ADMINISTRATION DRINKING WATER LINE CONSTRUCTION 440 KEÇİÖREN ANKARA OTHER INFRASTRUCTURE KEÇİÖREN MUNICIPALITY SIDEWALK AND BORDER CONSTRUCTION 07.04.2017 01.01.2018 5.420.697 BALIKESİR WATER BALIKESIR PROVINCE, MARMARA, ERDEK, BANDIRMA, MANYAS AND GÖNEN DISTRICTS 400 BALIKESİR DRINKING WATER 14.12.2016 09.04.2018 767.674 TOTAL 2.409.048.446 CHANNEL ADMINISTRATION DRINKING WATER LINE CONSTRUCTION 208 209

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

In 2018, Local Wastewater and Completed with Credit in Solid Waste Sectors In 2018, Local Administrations Completed With Credit In Municipal Buildings Sector

Num- Municipality Commence- Completion Provinces Sector Characteristics Cost (TRL) Num- Municipality Commence- Completion ber Provinces Sector Characteristics Cost (TRL) Name ment Date Date ber Name ment Date Date 1 AHMETBEY KIRKLARELİ SEWAGE AHMETBEY (KIRKLARELİ) SEWERAGE CONSTRUCTION 06.03.2018 11.07.2018 1.003.236 1 SAİMBEYLİ ADANA Municipal Buildings Parking and Wedding Hall Construction 06.11.2017 20.07.2018 1.593.788 2 ASKİ AYDIN SEWAGE HORSUNLU (AYDIN) SEWERAGE CONSTRUCTION 26.07.2017 06.11.2018 8.257.130 Kızılcahamam (Ankara) Municipality Building Supply 3 BARBAROS TEKİRDAĞ SEWAGE BARBAROS (TEKİRDAĞ) SEWERAGE CONSTRUCTION 04.11.2015 28.06.2018 17.058.917 2 KIZILCAHAMAM ANKARA Municipal Buildings 10.07.2017 15.01.2018 2.649.255 Construction 4 CİZRE ŞIRNAK SEWAGE CİZRE (ŞIRNAK) DRINKING WATER CONSTRUCTION 11.01.2017 15.11.2018 44.960.748 3 EVREN ANKARA Municipal Buildings Municipality Service Building Construction
02.01.2017 16.02.2018 2.265.965 5 CİZRE ŞIRNAK SEWAGE CİZRE (ŞIRNAK) PARTIAL DRINKING WATER AND SEWERAGE CONSTRUCTION 19.12.2016 15.11.2018 34.964.074

6 ELAZIĞ ELAZIĞ SEWAGE ELAZIĞ (CENTRAL) PARTIAL SEWERAGE CONSTRUCTION 18.12.2016 14.08.2018 55.887.413 4 MAMAK ANKARA Municipal Buildings Caglayan Mah. 39762 Island 8 Parcel Mosque İnş. 22.09.2016 03.01.2018 1.500.000 ERCIS (VAN) WASTEWATER TREATMENT PLANT AND SEWERAGE 7 ERCİŞ VAN SEWAGE 18.09.2013 24.09.2018 46.001.909 Kent Square Storey Underground Car Park Construction CONSTRUCTION 5 ÇORUM ÇORUM Municipal Buildings 18.08.2016 08.02.2018 21.018.841 Work 8 Gönen BALIKESİR SEWAGE GÖNEN DISTRICT WWTP AND PARTIAL SEWERAGE CONSTRUCTION 17.06.2016 12.04.2018 21.097.532 Central Mosque Square Arrangement Landscape 6 AKÇAKOCA DÜZCE Municipal Buildings 02.01.2017 02.02.2018 5.000.000 9 HIDIRBEYLİ AYDIN SEWAGE HIDIRBEYLI (AYDIN) SEWERAGE CONSTRUCTION 23.08.2017 14.08.2018 4.832.057 Arrangement Work

10 KARAKOÇAN ELAZIĞ SEWAGE KARAKOÇAN (ELAZIĞ) PARTIAL SEWERAGE CONSTRUCTION 23.05.2018 11.10.2018 43.273 Eymir Mahallesi 113134 Island 3 Parcel Social Cultural 7 GÖLBAŞI ANKARA Municipal Buildings 26.09.2016 12.02.2018 6.939.687 Facility Building Construction Work 11 NUSAYBİN MARDİN SEWAGE NUSAYBİN (MARDİN) DRINKING WATER CONSTRUCTION 19.12.2016 02.07.2018 41.855.756

12 NUSAYBİN MARDİN SEWAGE NUSAYBİN (MARDİN) PARTIAL SEWERAGE CONSTRUCTION 19.12.2016 28.04.2018 32.797.941 8 ÇANKIRI ÇANKIRI Municipal Buildings İstiklal Park Construction Work 09.06.2017 07.06.2018 3.000.000

13 SİLOPİ ŞIRNAK SEWAGE SİLOPİ (ŞIRNAK) DRINKING WATER CONSTRUCTION 19.12.2016 07.06.2018 44.785.255 Pursaklar Municipality Education, Culture and Dormitory 9 PURSAKLAR ANKARA Municipal Buildings 07.08.2017 20.07.2018 1.801.211 Building Construction 14 SİLOPİ ŞIRNAK SEWAGE SİLOPİ (ŞIRNAK) PARTIAL SEWERAGE CONSTRUCTION 19.12.2016 06.03.2018 24.841.045

SUR (DIYARBAKIR) SEWERAGE, RAINWATER AND DRINKING WATER 10 SÖĞÜT BURDUR Municipal Buildings New Municipality Service Building Construction 10.07.2017 25.05.2018 1.753.354 15 SUR DİYARBAKIR SEWAGE 31.08.2016 24.12.2018 8.025.454 CONSTRUCTION BURSA Bursa Metropolitan Municipality District Construction and 16 ŞIRNAK ŞIRNAK SEWAGE ŞIRNAK (CENTRAL) SEWERAGE CONSTRUCTION 19.12.2016 05.10.2018 34.858.926 11 BURSA Municipal Buildings 07.04.2015 11.03.2018 3.989.212 BÜYÜKŞEHİR Landscaping Construction Work TUNCELİ (CENTRAL) PARTIAL DRINKING WATER-SEWERAGE-RAINWATER 17 TUNCELİ TUNCELİ SEWAGE 09.12.2014 17.10.2018 12.891.838 BURSA Urban Design and Recreation Supply Construction Work CONSTRUCTION 12 BURSA Municipal Buildings 06.05.2016 11.04.2018 11.845.861 BÜYÜKŞEHİR Between Mudanya Pier Armistice Building 18 VEZİRKÖPRÜ SAMSUN SEWAGE VEZİRKÖPRÜ (SAMSUN) SEWERAGE AND RAINWATER CONSTRUCTION 01.02.2017 22.05.2018 14.364.965 13 HARMANCIK BURSA Municipal Buildings Closed Marketplace Construction 22.03.2017 03.07.2018 2.166.667 19 YEŞİLYURT MANİSA SEWAGE YEŞİLYURT (MANİSA) SEWERAGE CONSTRUCTION 15.06.2017 18.09.2018 8.730.024

20 YÜKSEKOVA HAKKÂRİ SEWAGE YÜKSEKOVA (HAKKARİ) PART 1 SEWERAGE AND RAINWATER CONSTRUCTION 09.03.2017 16.11.2018 31.379.067 14 BÜYÜKORHAN BURSA Municipal Buildings Büyükorhan Municipality Building Construction 13.01.2017 16.02.2018 1.652.667 YÜKSEKOVA (HAKKARİ) 2nd STAGE SEWERAGE AND RAINWATER 21 YÜKSEKOVA HAKKÂRİ SEWAGE 02.03.2017 16.11.2018 32.699.128 BURSA Construction of Parking Areas and Landscaping in Batman CONSTRUCTION 15 BURSA Municipal Buildings 27.03.2017 28.03.2018 16.481.432 BÜYÜKŞEHİR and Siirt Center and Districts 22 DESKİ DENİZLİ KATI ATIK KALE-TAVAS-BEYAĞAÇ SOLID WASTE DISPOSAL PLANT 30.09.2016 17.04.208 7.491.310

ORDU METROPOLITAN MUNICIPALITY SOLID WASTE DISPOSAL PLANT 16 YILDIRIM BURSA Municipal Buildings Mimar Sinan Neighborhood Closed Market Construction 12.10.2017 07.09.2018 3.990.277 23 ORDU ORDU KATI ATIK REGULAR STORAGE AREA WASTE LEAK WATER TREATMENT PLANT AND 13.06.2017 14.08.2018 13.060.642 CONSTANT FACILITIES CONSTRUCTION 17 YILDIRIM BURSA Municipal Buildings 75.Yıl Mahallesi Nursery Building Construction Work 02.11.2017 12.11.2018 1.292.943 TOTAL 541.887.639 18 ERUH SİİRT Municipal Buildings Construction of District Bus Station 23.06.2017 07.02.2018 490.166

Central and Village Schools Repair, Refectory and Sports 19 KULP DİYARBAKIR Municipal Buildings 25.10.2017 26.06.2018 2.926.000 Field Construction Work

In 2018, Local Governments’ Geotechnical and Geothermal Sector Credits Completed Municipality Women’s Employment Service Building 20 KULP DİYARBAKIR Municipal Buildings 25.09.2017 09.11.2018 1.661.864 Construction Work Num- Municipality Commence- Completion Provinces Sector Characteristics Cost (TRL) ber Name ment Date Date Müminağa Neighborhood Condolence House Construction 21 LİCE DİYARBAKIR Municipal Buildings 27.06.2018 26.10.2018 820.336 Group (Payment Work GEOTHERMAL-ZONING- 1 SİVAS ULAŞ GEOTHERMAL 06.10.2016 01.01.2018 under Reconstruction MAPPING-ZONING APPLICATION MALATYA Application) 22 MALATYA Municipal Buildings Doğanyol Cultural Center Construction 30.06.2017 30.08.2018 2.488.974 BÜYÜKŞEHİR 2 TOKAT NİKSAR GEOTHERMAL APPLICATION GEOTHERMAL APPLICATION 28.06.2016 17.01.2018 458.571 23 BATTALGAZİ MALATYA Municipal Buildings Infrastructure and Landscaping Construction 22.12.2017 19.02.2018 919.696 3 MANİSA KULA GEOTHERMAL APPLICATION GEOTHERMAL APPLICATION 14.06.2017 01.01.2018 115.640

Group (Payment GEOTHERMAL-ZONING- 24 KALE MALATYA Municipal Buildings Social Facility Building Construction 05.09.2017 19.01.2018 1.842.525 4 SİVAS ULAŞ GEOTHERMAL 06.10.2016 01.01.2018 under Reconstruction MAPPING-ZONING APPLICATION Application) Kale Municipality Social Facility Area Landscaping 25 KALE MALATYA Municipal Buildings 01.10.2018 30.11.2018 986.748 5 BALIKESİR EDREMİT GEOTHERMAL GEOTHERMAL 27.12.2016 01.01.2018 1.234.570 Construction Work

TOTAL 1.808.781 210 211

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

Asri Cemetery (Perimeter Wall, Security Shack, 26 ŞENKAYA ERZURUM Municipal Buildings Park Landscaping Application Construction Work 05.12.2016 12.02.2018 793.000 53 KIRŞEHİR KIRŞEHİR Municipal Buildings 03.10.2016 27.07.2018 8.950.445 Administrative Building 400 Sarcophagus) Construction

Ağrı Municipality Parking Arrangement Equipment and Park Küçükali Mah.8 Ada A Block 27 Flats 2 Shops B Block 28 27 AĞRI AĞRI Municipal Buildings 02.11.2018 29.11.2018 4.378.468 54 MELİKGAZİ KAYSERİ Municipal Buildings 11.10.2016 19.03.2018 1.789.833 Arrangement Construction Work Flats 2 Shops Urban Transformation Construction Works

DEREÇİNE 28 A.KARAHİSAR Municipal Buildings Wedding Hall Construction 27.07.2017 04.05.2018 1.418.554 55 KOCASİNAN KAYSERİ Municipal Buildings Mevlana Neighborhood Landscaping Construction Work 20.11.2017 14.09.2018 928.118 BELEDİYESSİ Railing and General Renovation Works in Sports Fields and 56 TALAS KAYSERİ Municipal Buildings 11.08.2017 29.01.2018 434.000 29 ADIYAMAN ADIYAMAN Municipal Buildings Yenimahalle Permanent District Bazaar Construction Work 24.03.2017 30.04.2018 2.390.048 Various Areas

Talas (Kayseri) Municipality Repair and Renovation Works 57 TALAS KAYSERİ Municipal Buildings 19.07.2018 16.11.2018 391.311 30 ÇAĞLAYANCERİT K.MARAŞ Municipal Buildings Construction of 5 Cultural Center 16.08i2017 25.06.2018 1.027.686 in Schools

Synthetic Grass Carpet Field Construction Work For Play 58 TALAS KAYSERİ Municipal Buildings 24.09.2018 26.11.2018 475.000 31 BESNİ ADIYAMAN Municipal Buildings Exterior Wall Coating 14.06.2017 22.02.2018 990.260 Group And Walking Paths

59 KULU KONYA Municipal Buildings Construction of the closure of the market place 24.11.2016 15.10.2018 3.000.000 32 NURDAĞI GAZİANTEP Municipal Buildings Market Place and Parking Lot Construction 23.11.2017 06.09.2018 4.660.735 Şıhlar District and Balcilar District Industrial Facilities 60 TAŞKENT KONYA Municipal Buildings 28.08.2017 09.04.2018 500.000 33 ERENLER SAKARYA Municipal Buildings Urban Transformation 2nd Stage 1st Part Construction 06.01.2017 03.05.2018 15.923.532 Construction (Insuyu Günyüzü Gölyazı Building Kandil and Karabağ) 61 CİHANBEYLİ KONYA Municipal Buildings 02.06.2017 01.02.2018 4.000.000 DENİZLİ Çamlıköşk Landscape, Type WC Construction Work 34 DENİZLİ Municipal Buildings 6 Carpet Field and 4 Carpet Field Renovation Works 15.05.2017 26.01.2018 1.914.138 BÜYÜKŞEHİR 62 IHLARA AKSARAY Municipal Buildings Outdoor Wedding Hall 03.08.2017 19.04.2018 463.641 DENİZLİ Metropolitan Municipality Construction and Repair of Park 35 DENİZLİ Municipal Buildings 30.09.2016 23.03.2018 4.550.556 BÜYÜKŞEHİR and Recreation Area in Various Regions 63 İLKADIM SAMSUN Municipal Buildings Park Construction in Various Neighborhoods 11.09.2018 02.02.2018 345.225 Tepeköy (Atatürk) Neighborhood Indoor Wedding Hall 36 TORBALI İZMİR Municipal Buildings 28.11.2016 29.01.2018 2.350.000 Construction Work 64 ATAKUM SAMSUN Municipal Buildings Ottoman Bath Construction Work 09.11.2016 17.01.2018 1.500.000 Anafartalar Neighborhood Tuesday Market Parking 37 ÖDEMİŞ İZMİR Municipal Buildings 07.04.2017 17.07.2018 4.170.017 Arrangement SAMSUN 65 SAMSUN Municipal Buildings Alaçam Geyikkoşan Beach arrangement 13.11.2015 26.02.2018 1.500.000 Ayrancılar Neighborhood Indoor Wedding Hall Construction BÜYÜKŞEHİR 38 TORBALI İZMİR Municipal Buildings 30.05.2017 10.04.2018 2.350.000 Work 66 ALTINORDU SAMSUN Municipal Buildings Atatürk Boulevard 2nd Stage Facade improvement Works 11.04.2017 02.04.2018 4.391.304 Yazıbaşı Neighborhood Indoor Wedding Hall Construction 39 TORBALI İZMİR Municipal Buildings 19.08.2018 08.07.2018 2.350.000 Work 67 ATAKUM SAMSUN Municipal Buildings Aquapark Construction Work 16.01.2018 06.07.2018 1.261.352 40 KÖŞK AYDIN Municipal Buildings Closed Car Park Construction 06.04.2017 06.04.2018 9.224.390 68 MESUDİYE ORDU Municipal Buildings Closed Marketplace Construction 16.07.2018 13.09.2018 400.000 Atatürk Mother and Women's Rights Memorial Restoration 41 KARŞIYAKA İZMİR Municipal Buildings 28.04.2017 11.09.2018 9.431.790 and Arrangement Covered Parking And Market Construction Additional 69 NİKSAR TOKAT Municipal Buildings 05.11.2018 28.11.2018 155.164 Security Systems 42 ÇİVRİL DENİZLİ Municipal Buildings Çıtak Neighborhood Marketplace Construction 10.01.2018 12.04.2018 736.257 70 ERBAA TOKAT Municipal Buildings Urban Square Landscaping Work 23.03.2017 11.01.2018 9.919.004

43 YUNUSEMRE MANİSA Municipal Buildings Ortaköy Neighborhood Biological Pond Construction 04.08.2017 01.02.2018 626.408 71 ULAŞ SİVAS Municipal Buildings District Cemetery Construction Work 10.04.2018 04.05.2018 194.423

44 ŞEHZADELER MANİSA Municipal Buildings Şehzadeler Youth Park 13.09.2017 20.04.2018 960.613 72 ZARA SİVAS Municipal Buildings Zara Municipality Closed Car Park Construction Work 01.02.2018 30.08.2018 4.067.080 Karaağaçlı Neighborhood Multi-Purpose Hall Construction 45 ŞEHZADELER MANİSA Municipal Buildings 14.11.2017 17.05.2018 331.893 Work 73 ZİLE TOKAT Municipal Buildings Zile Municipality Additional Service Building Construction 14.09.2017 11.12.2018 603.286

Construction of 2 Multi-Purpose Halls for Kaan and 46 ŞEHZADELER MANİSA Municipal Buildings 09.01.2018 26.09.2018 320.777 Belenyenice Neighborhoods 74 TATVAN BİTLİS Municipal Buildings Municipal Service Building and Landscaping 22.03.2016 24.05.2018 15.088.810

47 ŞEHZADELER MANİSA Municipal Buildings Molla Şaban Park Construction Work 11.12.2017 23.05.2018 369.340 TOTAL 238.045.693

Hotel and Multi-Purpose Hall Building Repair and 48 ULUS BARTIN Municipal Buildings 18.08.2017 31.01.2018 669.066 Construction

49 KOZLU ZONGULDAK Municipal Buildings Junction Refuge and Landscaping Works 22.06.2017 17.07.2018 1.500.000 In 2018, Goverment Works of Local Governments Completed with Credit

Num- Municipality Commence- Completion Provinces Sector Characteristics Cost (TRL) 50 KOZLU ZONGULDAK Municipal Buildings Stray Animals Care House Construction 11.11.2016 30.05.2018 450.000 ber Name ment Date Date

51 EREĞLİ ZONGULDAK Municipal Buildings Covering the Market with Steel Construction 14.07.2017 19.01.2018 1.722.698 1 MALATYA MALATYA CBS CBS 31.05.2017 01.01.2018 1.071.440

2 OSMANELİ BİLECİK CBS CBS 19.07.2017 19.07.2018 300.000 52 KANDİLLİ ZONGULDAK Municipal Buildings Wedding and Multi-Purpose Hall Building 07.07.2017 25.04.2018 1.000.000 TOTAL 1.371.440 212 213

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

In 2018, Local Administrations Completed with Credit in the Expropriation Sector In 2018, Local Administrations Completed with Credit in Renewable Energy Sector

Num- Municipality Commence- Completion Num- Municipality Commence- Completion Provinces Sector Characteristics Cost (TRL) Provinces Sector Characteristics Cost (TRL) ber Name ment Date Date ber Name ment Date Date

Establishment of photovoltaic solar power 1 DÜZCE DÜZCE EXPROPRIATION EXPROPRIATION 27.04.2016 2018 4.935.687 plants on the roofs of Green Neighborhood 1 TARSUS MERSİN RENEWABLE ENERGY 13.09.2017 23.03.2018 6.338.192 Live Animal Market and Bağlar Neighborhood 2 HATAY ALTINÖZÜ EXPROPRIATION EXPROPRIATION 26.12.2017 2018 281.142 Marketplace within Tarsus Municipality

2 ÇORUM ÇORUM RENEWABLE ENERGY Çorum(Center) WPP Construction Work 29.09.2016 03.07.2018 25.479.740 3 DÜZCE DÜZCE EXPROPRIATION EXPROPRIATION 13.03.2017 2018 4.987.913

Bolu (Center) 990 kWe Grid Connected 3 BOLU BOLU RENEWABLE ENERGY 02.11.2017 13.02.2018 4.370.014 4 YOZGAT YOZGAT EXPROPRIATION EXPROPRIATION 04.05.2016 2018 2.891.494 Photovoltaic Solar Power Plant Installation Work

Kuleönü Municipality 1000 kWe capacity Solar 4 KULEÖNÜ ISPARTA RENEWABLE ENERGY 10.11.2017 01.03.2018 4.000.000 5 ÇANAKKALE GELİBOLU EXPROPRIATION EXPROPRIATION 07.05.2012 2018 1.999.996 Power Plant

Orhaneli Municipality Installation of 990 kW 5 ORHANELİ BURSA RENEWABLE ENERGY 09.10.2017 06.02.2018 4.131.715 6 ERZURUM BÜYÜKŞEHİR EXPROPRIATION EXPROPRIATION 19.11.2015 2018 19.972.476 Photovoltaic Solar Power Plant

6 KAVAKYOLU ERZİNCAN RENEWABLE ENERGY 350 Kwe (GES) Construction Work 21.11.2016 27.07.2018 973.100 7 ARDAHAN ARDAHAN EXPROPRIATION EXPROPRIATION 08.05.2017 2018 591.584

ERZİNCAN İL Erzincan Special Provincial Administration 7 ERZİNCAN RENEWABLE ENERGY 16.08.2017 02.03.2018 3.200.276 8 ÇORUM ORTAKÖY EXPROPRIATION EXPROPRIATION 18.09.2017 2018 104.435 ÖZEL İDARE Photovoltaic Solar Power Plant Installation Work (500 KW e Solar Power Plant Construction) WATER CHANNEL 9 GAZİANTEP EXPROPRIATION EXPROPRIATION 13.04.2017 2018 19.991.823 Repeat tender: İhsaniye (Afyonkarahisar) ADMINISTRATION 8 İHSANİYE AFYONKARAHİSAR RENEWABLE ENERGY Municipality 500 kW Power Solar Power Plant 17.08.2017 04.09.2018 2.165.985 Temporary Acceptance Deficiencies Completion 10 MALATYA KULUNCAK EXPROPRIATION EXPROPRIATION 30.06.2015 2018 824.893 Construction Work

11 DENİZLİ DENİZLİ EXPROPRIATION EXPROPRIATION 28.04.2016 2018 55.000.000 9 BOLVADİN AFYONKARAHİSAR RENEWABLE ENERGY Grid Connection Photovoltaic Solar Power Plant 23.10.2017 09.01.2018 4.395.342

Altıntaş (Kütahya) Municipality Construction of 12 BOLU GEREDE EXPROPRIATION EXPROPRIATION 05.07.2011 2018 753.464 10 ALTINTAŞ KÜTAHYA RENEWABLE ENERGY 06.09.2017 12.01.2018 2.801.908 650 KW Solar Power Plant

13 BURSA OSMANGAZİ EXPROPRIATION EXPROPRIATION 09.02.2017 2018 29.984.392 11 ÇOBANLAR AFYONKARAHİSAR RENEWABLE ENERGY 1000 Kwa Power Solar Power Plant 17.10.2017 12.09.2018 5.111.512

986 Kw INSTALLED POWER SOLAR POWER 14 BURSA BÜYÜKŞEHİR EXPROPRIATION EXPROPRIATION 22.06.2017 2018 85.000.000 12 GAZLIGÖL AFYONKARAHİSAR RENEWABLE ENERGY 26.09.2017 03.01.2018 5.227.400 PLANT (GES)

Kızılören (Afyonkarahisar) Municipality 249,6 15 DÜZCE GÖLYAKA EXPROPRIATION EXPROPRIATION 03.08.2017 2018 481.381 13 KIZILÖREN AFYONKARAHİSAR RENEWABLE ENERGY kWp (240 kWe) Solar Power Plant Construction 16.02.2018 25.05.2018 1.296.234 Work

16 SAMSUN HAVZA EXPROPRIATION EXPROPRIATION 05.10.2018 2018 401.599 Çivril (Denizli) Municipality Solar Energy (GES1- 14 ÇİVRİL DENİZLİ RENEWABLE ENERGY 18.10.2017 15.01.2018 3.500.000 GES2) Power Plant Construction Work

17 BUHARKENT AYDIN EXPROPRIATION EXPROPRIATION 25.10.2018 2018 289.500 15 KUYUCAK AYDIN RENEWABLE ENERGY Solar Power Plant (ges1 and ges2) 07.12.2017 04.06.2018 4.971.379

18 ERZURUM AZİZİYE EXPROPRIATION EXPROPRIATION 23.12.2016 2018 2.377.228 16 SULUSARAY NEVŞEHİR RENEWABLE ENERGY 995 KW Solar Power Plant (GES) Construction 21.02.2017 24.04.2018 5.663.555

Doğankent Municipality Networked 2 (two) 19 KAYSERİ AKKIŞLA EXPROPRIATION EXPROPRIATION 18.09.2017 2018 99.774 17 DOĞANKENT YOZGAT RENEWABLE ENERGY 500kW Photovoltaic Solar Power Plant 20.07.2017 12.06.2018 2.500.000 Construction Work 20 KAYSERİ İNCESU EXPROPRIATION EXPROPRIATION 23.11.2015 2018 420.367 Alaybeyli-1,2,3,4 (4X1000kWe) Unlicensed Solar KAYSERİ 18 KAYSERİ RENEWABLE ENERGY Photovoltaic Power Plant (GES) Construction in 30.05.2017 15.01.2018 13.407.938 BÜYÜKŞEHİR TOTAL 231.389.148 Talas District of Kayseri Kayseri Province Talas District Alaybeyli Mah. KAYSERİ 19 KAYSERİ RENEWABLE ENERGY Örenönü Mevkii 4 Units (4X1000Kwe) Unlicensed 14.08.2017 15.01.2018 14.592.062 BÜYÜKŞEHİR Solar Power Plant (Ges) Construction Work

Çiğkili Municipality One (1) 480 kW Photovoltaic 20 ÇİĞDEMLİ YOZGAT RENEWABLE ENERGY 27.07.2017 27.03.2018 1.500.000 Solar Power Plant Installation Works

Turnkey 327.6 kWp (300kWe) Installed 21 IHLARA AKSARAY RENEWABLE ENERGY 20.11.2017 19.03.2018 2.009.566 Photovoltaic Power Plant Construction Work

22 SERENLİ TOKAT RENEWABLE ENERGY 200 kw photovoltaic solar power plant 16.10.2017 18.04.2018 1.084.349

TOTAL 118.720.268 214 215

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

Completed Projects in Mapping Sector with Grant Allocated from Bank Profit in 2018 (Grant Credit) 42 URLA İZMİR MAP MAP 06.03.2018 12.10.2018 86.730

43 EMİRSEYİT TOKAT MAP-JEOLOJİ MAP 25.12.2017 07.11.2018 Group (payment under geology) Num- Commence- Completion Municipality Name Provinces Sector Characteristics Cost (TRL) ber ment Date Date 44 BALIKÖY KÜTAHYA MAP MAP 18.01.2018 02.11.2018 55.835

1 KEŞAN (İZZETİYİ MAH.) EDİRNE MAP-GEOLOGICAL-ZONING MAP 01.05.2017 19.01.2018 Group (Payment under the zoning plan) 45 İNECE KIRKLARELİ MAP MAP 07.12.2017 21.11.2018 65.240

2 AĞLASUN BURDUR MAP MAP 24.02.2017 15.01.2018 44.088 46 AĞAÇÖREN AKSARAY MAP-GEOLOGICAL-ZONING MAP 14.09.2017 31.11.2018 Group (Payment under the zoning plan)

3 YAĞLIDERE GİRESUN MAP MAP 17.02.2017 23.01.2018 158.460 47 ARDEŞEN RİZE MAP-JEOLOJİ-İMAR MAP 10.08.2017 25.07.2018 Group (Payment under the zoning plan)

4 ALPULLU KIRKLARELİ MAP MAP 08.02.2017 19.02.2018 39.600 48 İĞNEADA KIRKLARELİ MAP MAP 28.06.2018 11.12.2018 56.074

5 ÇARDAKLI ÇANKIRI MAP-GEOLOGICAL-ZONING MAP 28.07.2017 12.03.2018 Group (Payment under the zoning plan) 49 KEMALİYE ERZİNCAN MAP MAP 16.07.2018 03.12.2018 66.080

6 KARAKOYUNLU IĞDIR MAP MAP 29.01.2018 29.03.2018 27.140 50 SANCAK BİNGÖL MAP-GEOLOGICAL-ZONING MAP 15.09.2017 03.12.2018 Group (Payment under the zoning plan)

7 ŞEFAATLİ YOZGAT MAP-GEOLOGICAL-ZONING MAP 03.08.2017 17.04.2018 Group (Payment under the zoning plan) 51 TAVŞANLI KÜTAHYA MAP-JEOLOJİ-İMAR MAP 12.10.2017 07.12.2018 Group (Payment under the zoning plan)

8 ATKARACALAR ÇANKIRI MAP- İMAR MAP 04.08.2017 24.04.2018 Group (Payment under the zoning plan) 52 BUCAK BURDUR MAP MAP 14.12.2017 24.12.2018 160.480

9 SAĞLIK AKSARAY MAP MAP 26.10.2017 24.04.2018 75.340 53 ELMAKAYA MUŞ MAP MAP 23.07.2018 25.12.2018 80.240

10 KOCAALİ (26 mah.) SAKARYA MAP MAP 07.03.2017 07.05.2018 139.250 54 TUNÇBİLEK KÜTAHYA MAP MAP 06.07.2018 27.12.2018 24.709 11 DOMANİÇ KÜTAHYA MAP-JEOLOJİ-İMAR MAP 10.08.2017 08.05.2018 Group (Payment under the zoning plan) TOTAL 2.906.627 12 İNÖNÜ ESKİŞEHİR MAP MAP 28.06.2017 14.05.2018 111.392

13 ÇAYIRLI ERZİNCAN MAP-JEOLOJİ-İMAR MAP 15.09.2017 24.05.2018 Group (Payment under the zoning plan) Completed Works in ZONING PLAN Sector with Grant Allocated from Bank’s Profit in 2018 (Grant Credit) 14 KÖSELİ KIRŞEHİR MAP MAP 01.11.2017 06.06.2018 112.100 Num- Commence- Completion 15 BULANCAK GİRESUN MAP MAP 09.03.2017 12.06.2018 67.256 Municipality Name Provinces Sector Characteristics Cost (TRL) ber ment Date Date 16 CİDE KASTAMONU MAP-JEOLOJİ-İMAR MAP 15.09.2017 14.06.2018 Group (Payment under the zoning plan) 1 AKYAKA KARS ZONING PLAN ZONING PLAN 30.03.2015 09.01.2018 64.240 17 ARALIK IĞDIR MAP-JEOLOJİ-İMAR MAP 24.04.2017 20.07.2018 Group (Payment under the zoning plan) 2 KÖSE GÜMÜŞHANE ZONING PLAN ZONING PLAN 12.05.2014 02.01.2018 20.152

18 KARAKOYUNLU IĞDIR MAP-JEOLOJİ-İMAR MAP 10.11.20117 20.07.2018 Group (Payment under the zoning plan) 3 KAVAKYOLU ERZİNCAN MAP-GEOLOGY-ZONING PLAN ZONING PLAN 14.01.2016 01.02.2018 115.667 4 BAŞMAKÇI AFYONKARA- HİSAR ZONING PLAN + GEOTECHNICAL ZONING PLAN 16.06.2016 03.01.2018 142.065 19 MUCUR KIRŞEHİR MAP MAP 05.07.2017 15.08.2018 194.228 5 BOZÇALI TOKAT ZONING PLAN ZONING PLAN 22.05.2014 29.01.2018 33.440 20 KORU YALOVA MAP MAP 07.12.2017 03.08.2018 59.415 6 AYRANCI KARAMAN ZONING PLAN ZONING PLAN 24.06.2015 FES EDİLDİ 4.865 21 ÇAVUŞLU GİRESUN MAP-JEOLOJİ-İMAR MAP 17.08.2017 23.07.2018 Group (Payment under the zoning plan) 7 ÇAKILLI KIRKLARELİ ZONING PLAN + GEOTECHNICAL ZONING PLAN 10.04.2015 09.02.2018 50.389 22 YAHYALI KAYSERİ MAP MAP 10.08.2017 27.08.2018 334.845 8 SULAKYURT KIRIKKALE ZONING PLAN ZONING PLAN 26.01.2015 09.02.2018 14.344 23 ARDEŞEN RİZE MAP MAP 13.06.2018 26.07.2018 20.726 9 ARZULARKABAKÖY GÜMÜŞHANE ZONING PLAN + GEOTECHNICAL ZONING PLAN 19.08.2014 21.03.2018 47.222

24 AĞAÇÖREN AKSARAY 10 AĞIN ELAZIĞ MAP-GEOLOGY-ZONING PLAN ZONING PLAN 11.02.2016 23.03.2018 212.400 MAP MAP 13.06.2018 19.07.2018 45.902 25 ULUKIŞLA NİĞDE 11 EFLANİ KARABÜK ZONING PLAN + GEOTECHNICAL ZONING PLAN 01.07.2016 02.04.2018 70.471 12 PERŞEMBE ZONGULDAK ZONING PLAN + GEOTECHNICAL ZONING PLAN 05.09.2016 28.03.2018 129.800 26 KEMER ANTALYA MAP MAP 13.06.2018 02.08.2018 57.750 13 YENİPAZAR BİLECİK ZONING PLAN ZONING PLAN 14.12.2015 27.04.2018 18.644 27 DEMRE ANTALYA 14 DEVREKANİ KASTAMONU ZONING PLAN + GEOTECHNICAL ZONING PLAN 02.12.2016 16.05.2018 168.150 28 SANCAK BİNGÖL MAP MAP 13.06.2018 26.07.2018 21.261 15 YAYLADÜZÜ AĞRI ZONING PLAN + GEOTECHNICAL ZONING PLAN 04.10.2016 11.06.2018 91.839 29 SUŞEHRİ SİVAS 16 AĞLI KASTAMONU ZONING PLAN + GEOTECHNICAL ZONING PLAN 24.10.2016 29.06.2018 196.588 MAP MAP 13.06.2018 26.07.2018 41.064 30 EMİRSEYİT TOKAT 17 CİDE KASTAMONU ZONING PLAN + GEOTECHNICAL ZONING PLAN 17.03.2016 07.06.2018 102.542

31 URLA İZMİR 18 KEŞAN EDİRNE ZONING PLAN ZONING PLAN 25.12.2013 06.06.2018 158.710 MAP MAP 13.06.2018 19.07.2018 34.102 19 ALACA ÇORUM ZONING PLAN + GEOTECHNICAL ZONING PLAN 25.12.2014 21.09.2018 65.667 32 BALIKÖY KÜTAHYA 20 OLUKÖZÜ YOZGAT ZONING PLAN + GEOTECHNICAL ZONING PLAN 21.12.2016 08.10.2018 67.732 33 İNECE KIRKLARELİ MAP MAP 13.06.2018 21.11.2018 24.150 21 KORGAN ORDU ZONING PLAN + GEOTECHNICAL ZONING PLAN 25.02.2016 08.10.2018 89.175 34 BAKLAN DENİZLİ MAP MAP 13.06.2018 19.07.2018 37.642 22 GÜRGENTEPE ORDU ZONING PLAN ZONING PLAN 03.04.2014 12.10.2018 18.844 35 BUCAK BURDUR 23 HALFELİ IĞDIR ZONING PLAN + GEOTECHNICAL ZONING PLAN 27.06.2016 22.10.2018 81.243 36 MENDERES İZMİR MAP MAP 01.02.2017 03.09.2018 238.281 24 YONCALI MUŞ MAP-GEOLOGY-ZONING PLAN ZONING PLAN 16.02.2017 04.12.2018 204.244

37 ADAKLI BİNGÖL MAP-GEOLOGICAL-ZONING MAP 25.10.2017 03.09.2018 Group (Payment under the zoning plan) 25 ERİMLİ ELAZIĞ ZONING PLAN ZONING PLAN 10.04.2015 26.11.2018 22.444 26 KIRCASALİH EDİRNE ZONING PLAN + GEOTECHNICAL ZONING PLAN 24.07.2015 20.11.2018 74.635 38 KOYULHİSAR SİVAS MAP MAP 29.12.2017 23.10.2018 55.547 27 ÇERİKLİ KIRIKKALE ZONING PLAN + GEOTECHNICAL ZONING PLAN 29.06.2016 30.11.2018 212.400 39 ÇAĞLAYAN ERZİNCAN MAP MAP 01.06.2018 30.10.2018 59.000 28 KURUKÖPRÜ-GESİ KAYSERİ ZONING PLAN ZONING PLAN 28.06.2011 04.07.2018 120.360 40 BAKLAN DENİZLİ MAP-JEOLOJİ-İMAR MAP 25.12.2017 16.10.2018 Group (Payment under the zoning plan) 29 MURGUL ARTVİN ZONING PLAN + GEOTECHNICAL ZONING PLAN 02.09.2015 26.09.2018 53.525 41 ERENLER SAKARYA MAP MAP 24.11.2017 08.10.2018 312.700 TOTAL 2.651.795 216 217

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

Completed Projects in the Geological Research Sector with Grant Allocated from the Bank’s Profit in 2018 (Grant Credit) 36 SENİRKENT ISPARTA GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 17.05.2018 03.10.2018 106.200

MAP-GEOLOGICAL- 37 DOMANİÇ KÜTAHYA GEOLOGICAL RESEARCH 10.08.2017 17.09.2018 Group (Payment under the zoning plan) Num- Commence- Completion RECONSTRUCTION Municipality Name Provinces Sector Characteristics Cost (TRL) ber ment Date Date 38 ALAÇAM SAMSUN ZONING PLAN-GEOTECHNICS GEOLOGICAL RESEARCH 25.07.2018 28.09.2018 Group (Payment under the zoning plan) MAP-GEOLOGICAL- 1 YONCALI MUŞ GEOLOGICAL RESEARCH 16.02.2017 05.01.2018 Group (Payment under the zoning plan) MAP-GEOLOGICAL- RECONSTRUCTION 39 ŞEFAATLI YOZGAT GEOLOGICAL RESEARCH 03.08.2017 14.09.2018 Group (Payment under the zoning plan) RECONSTRUCTION 2 ALTUNHİSAR NİĞDE ZONING PLAN-GEOTECHNICS GEOLOGICAL RESEARCH 27.07.2017 16.01.2018 Group (Payment under the zoning plan) MAP-GEOLOGICAL- 40 CİDE KASTAMONU GEOLOGICAL RESEARCH 15.09.2017 30.10.2018 Group (Payment under the zoning plan) 3 ALTUNHİSAR NİĞDE GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 22.08.2017 16.01.2018 29.500 RECONSTRUCTION

MAP-GEOLOGICAL- 41 CEVDETİYE OSMANİYE ZONING PLAN-GEOTECHNICS GEOLOGICAL RESEARCH 23.03.2018 31.10.2018 Group (Payment under the zoning plan) 4 ŞARKIŞLA SİVAS GEOLOGICAL RESEARCH 30.12.2016 17.01.2018 Group (Payment under the zoning plan) RECONSTRUCTION MAP-GEOLOGICAL- 42 ÇAYIRLI ERZİNCAN GEOLOGICAL RESEARCH 15.09.2017 30.10.2018 Group (Payment under the zoning plan) 5 PERVARİ SİİRT ZONING PLAN-GEOTECHNICS GEOLOGICAL RESEARCH 15.09.2017 29.01.2018 Group (Payment under the zoning plan) RECONSTRUCTION MAP-GEOLOGICAL- 6 HASKÖY MUŞ ZONING PLAN-GEOTECHNICS GEOLOGICAL RESEARCH 03.08.2017 17.01.2018 Group (Payment under the zoning plan) 43 ÇAVUŞLU GİRESUN GEOLOGICAL RESEARCH 17.08.2017 14.11.2018 Group (Payment under the zoning plan) RECONSTRUCTION 7 DEVELİ KAYSERİ MAP-GEOLOGICAL GEOLOGICAL RESEARCH 14.11.2016 06.02.2018 171.100 MAP-GEOLOGICAL- 44 ARALIK IĞDIR GEOLOGICAL RESEARCH 24.04.2017 05.12.2018 Group (Payment under the zoning plan) KEŞAN (İZZETİYİ MAP-GEOLOGICAL- RECONSTRUCTION 8 EDİRNE GEOLOGICAL RESEARCH 01.05.2017 12.02.2018 Group (Payment under the zoning plan) MAH.) RECONSTRUCTION PALU (Karşıbahçeler ZONING PLAN + 45 ELAZIĞ GEOLOGICAL RESEARCH 23.07.2018 05.12.2018 Group (Payment under the zoning plan) 9 ELMADAĞ ANKARA GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 30.12.2016 06.02.2018 53.240 mah.) GEOTECHNICAL 46 OVAKENT YOZGAT GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 04.06.2018 05.12.2018 105.020 10 ELMADAĞ-2 ANKARA MAP-GEOLOGICAL GEOLOGICAL RESEARCH 08.03.2017 05.01.2018 178.600 ŞAVŞAT (Armutlu ZONING PLAN + ÇİFTLİK (Amasız 47 ARTVİN GEOLOGICAL RESEARCH 07.08.2017 17.12.2018 Group (Payment under the zoning plan) 11 NİĞDE ZONING PLAN - GEOTECHNICS GEOLOGICAL RESEARCH 07.08.2017 16.01.2018 Group (Payment under the zoning plan) Mah) GEOTECHNICAL Mah) ÇAYELİ (Limanköy 48 KOYULHİSAR SİVAS GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 20.09.2018 17.12.2018 42.480 12 RİZE GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 01.08.2017 29.01.2018 206.500,00 ve Yenipazar mah.) TOTAL 1.893.221 MAP-GEOLOGICAL- 13 DOĞUBEYAZIT AĞRI GEOLOGICAL RESEARCH 01.01.2016 01.01.2018 Group (Payment under the zoning plan) RECONSTRUCTION MAP-GEOLOGICAL- 14 ÜÇOCAK ELAZIĞ GEOLOGICAL RESEARCH 12.05.2017 28.02.2018 Group (Payment under the zoning plan) RECONSTRUCTION Completed Works within the Scope of GAP with 100% Grant in 2018 KELKİT (Karaçayır MAP-GEOLOGICAL- 15 GÜMÜŞHANE GEOLOGICAL RESEARCH 16.03.2017 19.04.2018 Group (Payment under the zoning plan) Num- Commencement mah) RECONSTRUCTION Municipality Name Provinces Sector Characteristics Completion Date Cost (TRL) ber Date 16 SİNOP SİNOP GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 28.09.2017 05.04.2018 351.640 1 TUT ADIYAMAN MAP MAP 19.04.2017 20.01.2018 78.769 17 HAVZA SAMSUN GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 15.09.2017 15.03.2018 155.760 MİTYAT (ÇAVUŞLU, SÖĞÜTLÜ, 2 MARDİN MAP MAP 07.03.2017 15.01.2018 103.285 18 AVANOS NEVŞEHİR ZONING PLAN - GEOTECHNICS GEOLOGICAL RESEARCH 18.05.2016 16.05.2018 Group (Payment under the zoning plan) GELİNKAYA. YOLBAŞI MAH.)

MAP-GEOLOGICAL- 3 ULUDERE ŞIRNAK MAP MAP 08.08.2017 10.01.2018 44.000 19 MECİTÖZÜ ÇORUM GEOLOGICAL RESEARCH 24.02.2017 16.05.2018 Group (Payment under the zoning plan) RECONSTRUCTION 4 ATABAĞI SİİRT MAP MAP 16.01.2016 22.02.2018 78.320 MAP-GEOLOGICAL- 20 ULUBEY ORDU GEOLOGICAL RESEARCH 10.02.2017 19.04.2018 Group (Payment under the zoning plan) RECONSTRUCTION 5 BAŞVERİMLİ ŞIRNAK MAP MAP 29.06.2017 26.02.2018 139.240

21 ÇİLİMLİ DÜZCE ZONING PLAN - GEOTECHNICS GEOLOGICAL RESEARCH 14.09.2017 10.05.2018 Group (Payment under the zoning plan) 6 BAŞVERİMLİ ŞIRNAK MAP MAP 08.08.2017 26.02.2018 64.900

22 SEYDİLER KASTAMONU ZONING PLAN - GEOTECHNICS GEOLOGICAL RESEARCH 15.09.2017 16.05.2018 Group (Payment under the zoning plan) 7 ULUDERE ŞIRNAK MAP MAP 11.07.2017 17.04.2018 115.830

AŞDAĞUL(AŞTA- 8 ŞIRNAK ŞIRNAK MAP MAP 29.06.2017 09.05.2018 164.020 23 ÇORUM ZONING PLAN - GEOTECHNICS GEOLOGICAL RESEARCH 09.11.2017 23.05.2018 Group (Payment under the zoning plan) VUL) 9 SİLVAN DİYARBAKIR MAP MAP 13.06.2018 26.07.2018 29.361 24 BEREKETLİ TOKAT GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 30.01.2018 06.06.2018 77.762 10 BİSMİL DİYARBAKIR MAP MAP 13.06.2018 19.07.2018 48.380 25 ESKİL(3) AKSARAY GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 02.03.2018 07.06.2018 106.554 11 ERUH SİİRT MAP MAP MAP-GEOLOGICAL- 26 ARDANUÇ ARTVİN GEOLOGICAL RESEARCH 08.06.2017 22.03.2018 Group (Payment under the zoning plan) RECONSTRUCTION 12 ERUH SİİRT MAP MAP 23.01.2018 20.11.2018 59.000 MAP-GEOLOGICAL- 27 KINIK TOKAT GEOLOGICAL RESEARCH 26.07.2017 19.04.2018 Group (Payment under the zoning plan) 13 BİSMİL DİYARBAKIR MAP MAP 15.09.2017 05.12.2018 127.738 RECONSTRUCTION 14 SİLVAN DİYARBAKIR MAP MAP 09.02.2018 31.12.2018 160.480 28 KINIK-2 TOKAT GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 10.01.2018 19.04.2018 52.982 ZONING PLAN - 15 KARALAR ŞIRNAK ZONING 25.05.2016 03.01.2018 115.377 29 KÖSECELİ ADIYAMAN GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 20.02.2018 06.07.2018 53.218 GEOTECHNICS MAP-GEOLOGICAL- 30 ÇARDAKLI ÇANKIRI GEOLOGICAL RESEARCH 28.07.2017 24.07.2018 Group (Payment under the zoning plan) 16 KARKAMIŞ GAZİANTEP ZONING PLAN ZONING 29.09.2014 10.05.2018 42.716 RECONSTRUCTION 17 LİCE DİYARBAKIR ZONING PLAN ZONING 04.06.2014 25.04.2018 24.342 31 ÇUKURCA HAKKARİ GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 31.01.2018 09.08.2018 51.920 ZONING PLAN - Group (Payment under 18 KOCAKÖY (HAZRO-KUMÇATI) DİYARBAKIR ZONING 03.06.2014 01.08.2018 32 OLUKÖZÜ YOZGAT JEOLOJİK-İMAR PLANI GEOLOGICAL RESEARCH 21.12.2016 01.01.2018 Group (Payment under the zoning plan) GEOTECHNICS the zoning plan)

33 ÖZEL İDARE SİNOP GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 14.02.2018 25.07.2018 75.225 19 HAZRO( KOCAKÖY-KUMÇATI) DİYARBAKIR ZONING 22.06.2014 25.04.2018

34 ULUDERE ŞIRNAK GEOLOGICAL RESEARCH GEOLOGICAL RESEARCH 15.03.2018 05.09.2018 75.520 ZONING PLAN - Group (Payment under 20 UZUNGEÇİT ŞIRNAK GEOTECHNICS 04.08.2014 21.06.2018 GEOTECHNICS the zoning plan) ZONING PLAN + 35 AMASYA AMASYA GEOLOGICAL RESEARCH 22.06.2017 01.06.2018 Group (Payment under the zoning plan) GEOTECHNICAL TOTAL 1.395.757 218 219

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

Completed Works in Municipal Buildings Sector with Appropriation of Bank Profit (51% Grant) in 2018 Drinking Water Supply Works Completed with Grant in Superstructure Sector in 2018

Num- Municipality Commence- Completion Provinces Sector Characteristics Cost (TRL) ber Num- Commencement Completion Name ment Date Date Municipality Name Provinces Sector Characteristics Cost (TRL) ber Date Date AĞRI PROVINCIAL SPECIAL 1 AĞRI PRODUCTION PATNOS ERGEÇLİ KÖYÜ VILLAGE HOUSE 06.09.2016 05.02.2018 265.852 ADMINISTRATION 1 PAZARLAR KÜTAHYA DRINKING WATER PE PIPE 05.10.2017 04.01.2018 22.924 ADIYAMAN PROVINCIAL KÂHTA HABİBLER VILLAGE MOSQUE AND QUR’AN COURSE 2 ADIYAMAN PRODUCTION 24.07.2017 08.02.2018 150.000 2 BÜKARDI ELAZIĞ DRINKING WATER PVC PIPE 09.10.2017 04.01.2018 46.263 SPECIAL ADMINISTRATION BUILDING CONSTRUCTION 3 EŞMAKAYA AKSARAY DRINKING WATER PE PIPE 14.07.2017 11.01.2018 213.297 KIRŞEHİR PROVINCIAL SPECIAL 3 KIRŞEHİR PRODUCTION MUCUR İLÇ. KIZILDAĞYENİYAPAN VILLAGE HOUSE 01.08.2017 26.01.2018 150.000 ADMINISTRATION 4 DURAĞAN SİNOP DRINKING WATER PE PIPE 14.07.2017 11.01.2018 499.558

ATABAĞI SİİRT MAP MAP 16.01.2016 22.02.2018 78.320 5 KÜRTÜN GÜMÜŞHANE DRINKING WATER DUKTİL PIPE 08.09.2017 10.01.2018 301.891 ÇANAKKALEPROVINCIAL YENCE DISTRICT KARAKÖY VILLAGE VILLAGE HOUSE 4 ÇANAKKALE PRODUCTION 13.07.2017 30.03.2018 295.437 6 ÇEKEREK YOZGAT DRINKING WATER PE PIPE 02.10.2017 11.01.2018 174.988 SPECIAL ADMINISTRATION CONSTRUCTION ADIYAMAN PROVINCIAL 7 HALFELİ IĞDIR DRINKING WATER PE PIPE 12.10.2017 11.01.2018 99.702 5 ADIYAMAN PRODUCTION GERGER DISTRICT BEYBOSTAN VILLAGE HOUSE 08.12.2017 07.05.2018 169.463 SPECIAL ADMINISTRATION 8 KÜRTÜN GÜMÜŞHANE DRINKING WATER STEEL PIPE 10.08.2017 11.01.2018 188.368 CENTRAL DISTRICT ABUZER GAFFARİ VISIT ADIYAMANPROVINCIAL 6 ADIYAMAN PRODUCTION ENVIRONMENTAL ARRANGEMENT AND SINK 27.09.2017 02.08.2018 287.065 9 ÇALIŞKAN ŞIRNAK DRINKING WATER PE PIPE 05.10.2017 15.01.2018 36.343 SPECIAL ADMINISTRATION CONSTRUCTION 10 MADENLİ RİZE DRINKING WATER PE PIPE 26.09.2017 17.01.2018 24.673 RİZE PROVINCIAL SPECIAL CONVERTING THE SCHOOL IN THE CASE OF ÇAYELİ 7 RİZE PRODUCTION 15.12.2015 29.12.2017 495.005 ADMINISTRATION (*) DISTRICT KAPTANPAŞA VILLAGE TO VILLAGE HOUSE 11 ERİMLİ ELAZIĞ DRINKING WATER PVC PIPE 24.10.2017 22.01.2018 45.591 GİRESUN PROVINCIAL SPECIAL 8 GİRESUN PRODUCTION ÇAMOLUK AKYAPI VILLAGE HOUSE 17.11.2017 09.05.2018 45.644 12 ARPALI BAYBURT DRINKING WATER VALVES AND EQUIPMENTS 18.01.2017 24.01.2018 12.492 ADMINISTRATION 13 KÖSECELİ ADIYAMAN DRINKING WATER PE PIPE 23.10.2017 16.02.2018 93.621 GİRESUN PROVINCIAL SPECIAL 9 GİRESUN PRODUCTION ALUCRA TEPEKÖY VILLAGE HOUSE 23.11.2017 2018 99.996 ADMINISTRATION 14 BAKACAKKADI ZONGULDAK DRINKING WATER PE PIPE 23.10.2017 16.02.2018 26.314 ADIYAMAN PROVINCIAL CENTRAL DISTRICT ABUZER GAFFARİ VISITING TOMB WC 10 ADIYAMAN PRODUCTION 2017 2018 12.935 15 ELBEYLİ KİLİS DRINKING WATER SUBMERSIBLE PUMP 18.01.2018 16.03.2018 30.888 SPECIAL ADMINISTRATION ENVIRONMENT ADIYAMAN PROVINCIAL 16 ÜZÜMLÜ ERZİNCAN DRINKING WATER PE PIPE 18.10.2017 12.04.2018 263.929 11 ADIYAMAN PRODUCTION KÂHTA DISTRICT MENZİL VILLAGE CLOSED HOUSING AREA 25.09.2017 06.03.2018 900.000 SPECIAL ADMINISTRATION 17 DODURGA ÇORUM DRINKING WATER PE PIPE 12.04.2018 26.07.2018 199.599 TOTAL 2.871.397 18 KIZILIRMAK ÇANKIRI DRINKING WATER PE PIPE 17.05.2018 02.08.2018 16.599

19 KUŞU KÜTAHYA DRINKING WATER PE PIPE 21.05.2018 28.09.2018 372.124

Works Completed in the Protocol on Supporting Urban Arrangements of Local Administrations (KENT-DES) 20 KUŞU KÜTAHYA DRINKING WATER PE PIPE 18.07.2018 10.09.2018 20.880 with the Appropriation of the Bank’s Profit (51% Grant) in 2018 21 FINDIKLI RİZE DRINKING WATER PE AND PVC PIPE 20.06.2018 14.09.2018 100.206

22 TUNCA RİZE DRINKING WATER PE PIPE 20.06.2018 02.10.2018 396.359 Num- Commence- Completion Municipality Name Provinces Sector Characteristics Cost (TRL) ber ment Date Date 23 KESKİN KIRIKKALE DRINKING WATER PE PIPE 17.08.2018 15.11.2018 92.070

1 DİYARBAKIR MUNICIPALITY DİYARBAKIR PRODUCTION ÇÜNGÜŞ PARK CONSTRUCTION 14.08.2017 19.02.2018 990.768 24 ŞAMBAYAT ADIYAMAN DRINKING WATER PE PIPE 15.10.2018 28.12.2018 73.448 TİLLO (SİİRT) MUNICIPALITY HASSA HATUN PARK 2 SİİRT MUNICIPALITY SİİRT PRODUCTION 12.02.2018 08.05.2018 246.061 CONSTRUCTION TOTAL 3.352.126

3 KARAKOYUNLU MUNICIPALITY IĞDIR PRODUCTION KARAKOYUNLU PARK CONSTRUCTION 16.03.2018 15.06.2018 200.000

4 SİİRT MUNICIPALITY SİİRT PRODUCTION KURTALAN PARK CONSTRUCTION 24.03.2017 11.09.2017 1.000.000

MİDYAT MARDİN ULUCAMİ NEIGHBORHOOD PARK 5 MİDYAT MUNICIPALITY MARDİN PRODUCTION 23.07.2017 2018 1.499.858 Completed Works in the Drinking Water Sector within the Scope of SUKAP in 2018 REGULATION ELEŞKİRT DISTRICT TAHİR MUNICIPALITY PARK Num- Commencement Completion 6 AĞRI MUNICIPALITY AĞRI PRODUCTION 07.08.2018 2018 237.953 ber Municipality Name Provinces Sector Characteristics Cost (TRL) CONSTRUCTION Date Date

7 AĞRI MUNICIPALITY AĞRI PRODUCTION YÜCEKAPI PARK CONSTRUCTION 03.09.2018 02.11.2018 244.264 1 PAMUKOVA SAKARYA DRINKING WATER DRINKING WATER CONSTRUCTION 18.06.2015 03.01.2018 9.165.843

RİZE PROVINCIAL SPECIAL ÇAYELİ DISTRICT TRANSFORMATION OF KAPTANPAŞA 2 ÖZBURUN A.KARAHİSAR DRINKING WATER DRINKING WATER CONSTRUCTION 10.11.2015 05.01.2018 2.702.780 7 RİZE PRODUCTION 15.12.2015 29.12.2017 495.005 ADMINISTRATION (*) VILLAGE ATILLE SCHOOL TO VILLAGE HOUSE 3 TAŞLIÇAY AĞRI DRINKING WATER DRINKING WATER CONSTRUCTION 08.11.2016 07.02.2018 1.667.926 TOTAL 4.418.904 DRINKING WATER AND DRINKING WATER PACKAGE 07.02.201 4 GÖLE ARDAHAN DRINKING WATER 20.03.2015 7.049.425 TREATMENT PLANT (Terminated)

5 ZİYARET AMASYA DRINKING WATER DRINKING WATER CONSTRUCTION 03.02.2017 12.01.2018 626.723

6 GÖKÇEBEY ZONGULDAK DRINKING WATER DRINKING WATER CONSTRUCTION 23.01.2017 05.01.2018 4.570.673

06.04.201 7 BAKACAKKADI ZONGULDAK DRINKING WATER DRINKING WATER CONSTRUCTION 10.11.2015 1.933.310 (Terminated)

8 DODURGA ÇORUM DRINKING WATER DRINKING WATER CONSTRUCTION 28.04.2017 21.03.2018 699.851

9 KÖMÜR ADIYAMAN DRINKING WATER DRINKING WATER CONSTRUCTION 23.05.2016 17.01.2018 5.038.436

AKINCILAR - DURAK 10 ADIYAMAN DRINKING WATER DRINKING WATER CONSTRUCTION 23.06.2016 05.02.2018 17.611.539 (Menzil) Mahallesi 220 221

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

11 ÜÇOCAK ELAZIĞ DRINKING WATER DRINKING WATER CONSTRUCTION 15.12.2016 04.05.2018 1.824.669 Completed Works in the Sewerage Sector within the Scope of SUKAP in 2018 12 TEKMAN ERZURUM DRINKING WATER DRINKING WATER CONSTRUCTION 07.09.2015 02.01.2018 7.006.615 Num- Commencement Completion Municipality Name Provinces Sector Characteristics Cost (TRL) 13 KÜRTÜN GÜMÜŞHANE DRINKING WATER DRINKING WATER CONSTRUCTION 22.06.2016 02.01.2018 1.358.350 ber Date Date

14 FİLYOS ZONGULDAK DRINKING WATER DRINKING WATER CONSTRUCTION 27.10.2011 18.04.2018 2.684.813 1 ABDİPAŞA BARTIN SEWAGE ABDİPAŞA (BARTIN) SEWERAGE CONSTRUCTION WORKS 11.10.2017 15.11.2018 3.991.137

AVSUYU - ODABAŞI - 15 HATAY DRINKING WATER DRINKING WATER SUPPLY CONSTRUCTION 08.10.2015 15.05.2018 1.903.560 2 AHLAT BİTLİS SEWAGE AHLAT (BİTLİS) PARTIAL SEWERAGE SUPPLY CONSTRUCTION 25.08.2017 13.07.2018 2.482.629 TURUNÇLU ARAKLI-BEŞİKDÜZÜ (MUNICIPALITIES DEEP SEA DISCHARGE 3 ARAKLI-BEŞİKDÜZÜ TRABZON SEWAGE 23.05.2013 01.11.2018 16.001.486 16 UZUNLU YOZGAT DRINKING WATER DRINKING WATER CONSTRUCTION 17.09.2015 26.05.2018 638.589 AND SEWERAGE CONSTRUCTION) 17 AKKIŞLA KAYSERİ DRINKING WATER DRINKING WATER CONSTRUCTION (KASKİ) 06.10.2015 30.05.2018 4.542.554 BAKACAKKADI BAKACAKKADI (ZONGULDAK) SEWERAGE CONSTRUCTION 4 ZONGULDAK SEWAGE 25.06.2015 02.04.2018 9.064.689 18 BÜNYAN, SARIOĞLAN KAYSERİ DRINKING WATER GRUP DRINKING WATER CONSTRUCTION 25.11.2015 04.01.2018 20.649.842 GÖKÇEBEY AND GÖKÇEBEY (ZONGULDAK) SEWERAGE CONSTRUCTION 5 BALIŞEYH KIRIKKALE SEWAGE BALIŞEYH (KIRIKKALE) SEWERAGE CONSTRUCTION 05.07.2017 15.11.2018 8.122.781 19 KARLIOVA BİNGÖL DRINKING WATER DRINKING WATER CONSTRUCTION 18.05.2015 26.04.2018 4.765.134 6 BOZCAADA ÇANAKKALE SEWAGE Bozcaada Wastewater Treatment Plant Construction 23.11.2017 07.12.2018 3.049.329 20 TINAZTEPE A.KARAHİSAR DRINKING WATER DRINKING WATER CONSTRUCTION 12.04.2017 08.08.2018 3.142.402 ERGENE HAVZASI WITHIN BÜYÜKMANDIRA AND 21 ALACA ÇORUM DRINKING WATER DRINKING WATER CONSTRUCTION 25.08.2016 29.06.2018 13.704.778 BÜYÜKMANDIRA- 7 KIRKLARELİ SEWAGE BÜYÜKKARIŞTIRAN (KIRKLARELİ) SEWERAGE AND 23.09.2013 21.02.2018 12.317.696 ZİYARET BÜYÜKKARIŞTIRAN 22 SİİRT DRINKING WATER DRINKING WATER SUPPLY CONSTRUCTION 19.12.2016 26.07.2018 14.128.730 WASTEWATER TREATMENT PLANT CONSTRUCTION (VEYSELKARANİ) CUMAYERİ (DÜZCE) SEWERAGE AND RAINWATER 8 CUMAYERİ DÜZCE SEWAGE 02.08.2017 13.11.2018 10.169.877 23 SİLOPİ ŞIRNAK DRINKING WATER DRINKING WATER CONSTRUCTION 19.12.2016 17.07.2018 44.785.255 CONSTRUCTION WORK 24 HEKİMHAN MALATYA DRINKING WATER DRINKING WATER CONSTRUCTION 07.02.2014 17.07.2018 10.698.722 ÇAĞLAYANCERİT (KAHRAMANMARAŞ) SEWERAGE 9 ÇAĞLAYANCERİT K.MARAŞ SEWAGE 26.08.2013 23.05.2018 10.392.170 25 KOVANCILAR ELAZIĞ DRINKING WATER DRINKING WATER CONSTRUCTION 13.03.2017 31.07.2018 1.763.302 CONSTRUCTION ÇALIŞ (NEVŞEHİR) GRUP WASTEWATER TREATMENT PLANT 26 İMRANLI SİVAS DRINKING WATER DRINKING WATER CONSTRUCTION 11.10.2016 15.08.2018 4.296.754 10 ÇALIŞ NEVŞEHİR SEWAGE 13.10.2016 11.12.2018 2.134.203 AND COLLECTOR LINE CONSTRUCTION 27 FİZME ORDU DRINKING WATER DRINKING WATER AND PACKAGE TREATMENT PLANT 06.10.2011 20.06.2018 1.726.534 11 ÇAMARDI NİĞDE SEWAGE ÇAMARDI (NİĞDE) SEWERAGE CONSTRUCTION 09.11.2016 22.10.2018 11.610.291 28 İPSALA EDİRNE DRINKING WATER DRINKING WATER CONSTRUCTION 24.03.2015 06.06.2018 6.141.537 12 ÇARDAK DENİZLİ SEWAGE ÇARDAK ( DENİZLİ ) ATIKSU ARITMA TESİSİ 27.10.2015 15.10.2018 5.842.687 29 KOFÇAZ KIRKLARELİ DRINKING WATER DRINKING WATER CONSTRUCTION 01.04.2016 04.09.2018 1.548.975 13 ÇATALAĞZI ZONGULDAK SEWAGE ÇATALAĞZI (ZONGULDAK) SEWERAGE CONSTRUCTION 13.01.2016 20.02.2018 6.385.479 30 BÜYÜKMANDIRA KIRKLARELİ DRINKING WATER DRINKING WATER CONSTRUCTION 20.12.2016 18.10.2018 679.942 14 ÇAYIRBAĞI TRABZON SEWAGE ÇAYIRBAĞI (TRABZON) SEWERAGE CONSTRUCTION 10.08.2012 07.09.2018 4.386.502 31 DEMİRKÖY KIRKLARELİ DRINKING WATER DRINKING WATER CONSTRUCTION 11.05.2015 10.04.2018 4.594.508 15 ÇAYKENT RİZE SEWAGE ÇAYKENT (RİZE) SEWERAGE CONSTRUCTION 17.09.2015 15.10.2018 5.777.347

32 DEREÇİNE A.KARAHİSAR DRINKING WATER DRINKING WATER CONSTRUCTION 04.07.2017 30.11.2018 2.311.366 ÇOBANLAR- ÇOBANLAR-KOCAÖZ-IŞIKLAR-SÜLÜMENLİ 33 DÜNDARLI NİĞDE DRINKING WATER DRINKING WATER CONSTRUCTION 06.03.2017 11.09.2018 3.768.716 16 KOCAÖZ-IŞIKLAR- A.KARAHİSAR SEWAGE (AFYONKARAHİSAR) WASTEWATER TREATMENT PLANT AND 07.12.2016 22.10.2018 6.656.669 SÜLÜMENLİ PARTIAL SEWERAGE SUPPLY CONSTRUCTION 34 BOĞAZLIYAN YOZGAT DRINKING WATER DRINKING WATER CONSTRUCTION 07.10.2015 16.07.2018 21.446.978 17 ÇUKURKUYU ERZİNCAN SEWAGE ÇUKURKUYU (ERZİNCAN) SEWERAGE CONSTRUCTION 18.10.2017 04.01.2018 2.728.567 ESKİPAZAR, KARABÜK, 35 DRINKING WATER DRINKING WATER CONSTRUCTION 26.09.2017 28.09.2018 1.971.598 BAKACAKKADI ZONGULDAK DAĞPINAR (KARS) SEWERAGE AND DRINKING WATER 18 DAĞPINAR KARS SEWAGE 11.08.2016 27.06.2018 7.737.044 36 SÜLOĞLU EDİRNE DRINKING WATER DRINKING WATER CONSTRUCTION 21.06.2017 07.11.2018 3.443.279 CONSTRUCTION DEĞİRMENLİ (NİĞDE) SEWERAGE AND DRINKING WATER 04.10.201 37 BÜYÜKKÖY ANTALYA DRINKING WATER DRINKING WATER CONSTRUCTION 11.06.2015 251 19 DEĞİRMENLİ NİĞDE SEWAGE 17.05.2017 04.12.2018 11.932.734 (Liquidation) CONSTRUCTION

38 ARICAK ELAZIĞ DRINKING WATER DRINKING WATER CONSTRUCTION 09.12.2015 30.10.2018 4.066.734 20 DESKİ DENİZLİ SEWAGE BEYAĞAÇ (DENİZLİ) SEWERAGE CONSTRUCTION 28.09.2017 28.11.2018 14.389.655 DOĞANYURT SEWERAGE AND RAINWATER NETWORK 39 DİGOR KARS DRINKING WATER DRINKING WATER CONSTRUCTION 26.08.2015 01.10.2018 1.941.967 21 DOĞANYURT KASTAMONU SEWAGE 05.03.2018 20.12.2018 3.373.425 CONSTRUCTION 40 SULUSARAY TOKAT DRINKING WATER DRINKING WATER CONSTRUCTION 15.08.2017 30.11.2018 2.660.665 22 ELMAKAYA MUŞ SEWAGE ELMAKAYA (MUŞ) SEWERAGE CONSTRUCTION 24.06.2016 13.09.2018 5.282.840 41 HASANŞEYH TOKAT DRINKING WATER DRINKING WATER CONSTRUCTION 14.08.2017 08.11.2018 2.034.369 23 FETHİBEY A.KARAHİSAR SEWAGE FETHİBEY (AFYONKARAHİSAR) SEWERAGE CONSTRUCTION 26.10.2016 28.06.2018 6.877.538 42 DEREDOLU GÜMÜŞHANE DRINKING WATER DRINKING WATER CONSTRUCTION 11.04.2017 15.11.2018 765.952 GÖLHİSAR (BURDUR) SEWERAGE, RAINWATER AND 24 GÖLHİSAR BURDUR SEWAGE 14.09.2015 18.10.2018 44.010.939 43 BAĞLAMA NİĞDE DRINKING WATER DRINKING WATER CONSTRUCTION 15.08.2017 20.12.2018 2.699.647 DRINKING WATER CONSTRUCTION

44 GÜLŞEHİR NEVŞEHİR DRINKING WATER DRINKING WATER AND SEWERAGE CONSTRUCTION 25.01.2017 28.12.2018 27.281.452 GÖRDES (MANİSA) WASTEWATER TREATMENT PLANT, 25 GÖRDES MANİSA SEWAGE 04.06.2015 21.06.2018 10.281.765 RAINWATER AND SEWERAGE CONSTRUCTION TOTAL 278.045.048 26 GÜLPINAR AKSARAY SEWAGE GÜLPINAR (AKSARAY) SEWERAGE CONSTRUCTION 29.12.2015 12.06.2018 12.382.544

27 HACIBEKTAŞ NEVŞEHİR SEWAGE HACIBEKTAŞ (NEVŞEHİR) SEWERAGE CONSTRUCTION 09.03.2016 02.08.2018 13.287.470

28 HARMANCIK BURSA SEWAGE Harmancık (Bursa) Sewerage and Stormwater Construction 06.07.2017 07.12.2018 17.035.346 2018 Yılında İçmesuyu Sektöründe BELDES Kapsamında Bitirilen İşler 29 HATİPLİ TOKAT SEWAGE HATİPLİ (TOKAT) SEWERAGE CONSTRUCTION 21.03.2018 25.12.2018 2.559.553

Num- Municipality Commencement Completion Provinces Sector Characteristics Cost (TRL) HEMŞİN (RİZE) PACKAGE WASTEWATER TREATMENT PLANT ber Name Date Date 30 HEMŞİN RİZE SEWAGE 29.06.2017 27.04.2018 1.200.842 CONSTRUCTION DRINKING WATER SUPPLY 1 BEĞENDİK SİİRT DRINKING WATER 08.09.2014 08.05.2018 5.170.199 31 HINIS ERZURUM SEWAGE HINIS (ERZURUM) SEWERAGE CONSTRUCTION 22.02.2017 09.10.2018 18.223.268 CONSTRUCTION HÜYÜK (KONYA) WASTEWATER TREATMENT PLANT 32 HÜYÜK KONYA SEWAGE 27.01.2017 11.01.2018 2.965.351 TOTAL 5.170.199 CONSTRUCTION 222 223

ILLER BANK ANNUAL REPORT 2018 ILLER BANK ANNUAL REPORT 2018

Information On Works Completed By The Bank in 2018 Information On Works Completed By The Bank in 2018

50% İlbank Grant in 2018 - 50% Ministry Completed Works within the Scope of the Grant 33 İDİL ŞIRNAK SEWAGE İDİL (ŞIRNAK) DRINKING WATER CONSTRUCTION 19.12.2016 11.07.2018 17.499.917

34 KAVAKLIDERE MUĞLA SEWAGE KAVAKLIDERE (MUĞLA) SEWERAGE CONSTRUCTION 12.04.2017 06.03.2018 1.482.686 Num- Commencement Completion Municipality Name Provinces Sector Characteristics Cost (TRL) ber Date Date 35 KEÇİKALESİ NİĞDE SEWAGE KEÇİKALESİ (NİĞDE) SEWERAGE CONSTRUCTION 02.11.2016 03.09.2018 4.387.062 Grup (Payment under the 1 SEYİTGAZİ ESKİŞEHİR GEOLOGICAL-ZONING-MAP MAP 23.03.2017 11.06.2018 36 KELES BURSA SEWAGE Keles (Bursa) Sewerage and Stormwater Construction 29.11.2016 13.03.2018 9.797.004 Zoning Plan) KIZILCAHAMAM (ANKARA) WASTEWATER TREATMENT 2 PAZAR RİZE MAP MAP 13.06.2018 26.07.2018 20.973 37 KIZILCAHAMAM ANKARA SEWAGE 07.12.2016 05.10.2018 10.331.593 PLANT CONSTRUCTION 3 ZİYARET AMASYA ZONING PLAN ZONING 18.02.2016 25.01.2018 9.959 KOCAALİ ( SAKARYA ) WASTEWATER TREATMENT PLANT 38 KOCAALİ SAKARYA SEWAGE 20.09.2013 15.10.2018 55.443.520 4 ÖREN GİRESUN ZONING PLAN + GEOTECHNICAL ZONING 23.06.2015 03.01.2018 87.238 AND CHANNEL CONSTRUCTION 5 AKÇAKOCA DÜZCE MAP-GEOLOGY-ZONING ZONING 20.07.2015 14.03.2018 220.660 39 KOVANCILAR ELAZIĞ SEWAGE KOVANCILAR (ELAZIĞ) KISMİ SEWERAGE CONSTRUCTION 14.09.2017 18.07.2018 6.673.266 6 GÜNEYKAYA SİVAS ZONING PLAN + GEOTECHNICAL ZONING 24.03.2016 14.03.2018 69.620 40 KÖSE GÜMÜŞHANE SEWAGE KÖSE WASTEWATER TREATMENT PLANT CONSTRUCTION 19.12.2017 06.12.2018 1.804.508 7 KAVAKLI KIRKLARELİ ZONING PLAN ZONING 14.04.2016 07.03.2018 27.542 LAPSEKİ - ÇARDAK (ÇANAKKALE) GROUP WASTEWATER 8 KOCAALİLER BURDUR MAP-GEOLOGY-ZONING ZONING 29.07.2015 10.04.2018 199.141 41 LAPSEKİ-ÇARDAK ÇANAKKALE SEWAGE 17.06.2016 05.04.2018 10.559.967 TREATMENT PLANT CONSTRUCTION 9 BULANCAK GİRESUN ZONING PLAN + GEOTECHNICAL ZONING 06.07.2015 10.04.2018 10.452 42 OCAKLAR BALIKESİR SEWAGE OCAKLAR (BALIKESİR) SEWERAGE SUPPLY CONSTRUCTION 02.11.2016 17.07.2018 6.617.954 MADENLİ, GÜNEYSU, 10 RİZE ZONING PLAN + GEOTECHNICAL ZONING 26.12.2014 12.04.2018 170.133 43 OLUKÖZÜ YOZGAT SEWAGE OLUKÖZÜ (YOZGAT) SEWERAGE CONSTRUCTION 07.07.2017 13.12.2018 3.563.764 DEMİRÖZÜ 11 SUSUZ KARS MAP-GEOLOGY-ZONING ZONING 02.07.2015 06.06.2018 161.431 44 SALTUKOVA ZONGULDAK SEWAGE SALTUKOVA (ZONGULDAK) SEWERAGE CONSTRUCTION 24.11.2016 27.06.2018 5.056.769 12 ÇAMARDI NİĞDE ZONING PLAN + GEOTECHNICAL ZONING 31.03.2016 19.07.2018 123.825 45 SARAY VAN SEWAGE SARAY (VAN) SEWERAGE CONSTRUCTION 26.08.2015 18.05.2018 4.720.894 13 AYVACIK ÇANAKKALE ZONING PLAN ZONING 08.06.2015 01.08.2018 31.624 SARAYDÜZÜ (SİNOP) SEWERAGE, RAINWATER AND 46 SARAYDÜZÜ SİNOP SEWAGE 19.06.2017 11.10.2018 6.129.149 14 BOĞAZİÇİ DÜZCE ZONING PLAN + GEOTECHNICAL ZONING 29.06.2015 08.08.2018 98.294 WASTEWATER TREATMENT PLANT CONSTRUCTION 15 ÇAMOLUK GİRESUN ZONING PLAN + GEOTECHNICAL ZONING 08.06.2015 01.08.2018 104.280 47 SARIKAMIŞ KARS SEWAGE SARIKAMIŞ (KARS) SEWERAGE CONSTRUCTION 26.08.2015 28.05.2018 11.380.054 16 GÖYNÜCEK AMASYA ZONING PLAN + GEOTECHNICAL ZONING 05.12.2016 04.09.2018 62.540 48 SARIPINAR MUŞ SEWAGE SARIPINAR (MUŞ) SEWERAGE CONSTRUCTION 19.07.2017 23.11.2018 3.721.516 17 EYMİR YOZGAT MAP-GEOLOGY-ZONING ZONING 31.07.2015 24.09.2018 200.408 49 SİVRİCE ELAZIĞ SEWAGE SİVRİCE (ELAZIĞ) KISMİ SEWERAGE CONSTRUCTION 31.07.2017 29.11.2018 3.802.248 18 ÖZKÜRTÜN GÜMÜŞHANE ZONING PLAN + GEOTECHNICAL ZONING 19.06.2015 06.12.2018 93.220 SUDURAĞI (KARAMAN) WASTEWATER TREATMENT PLANT 50 SUDURAĞI KARAMAN SEWAGE 13.05.2015 31.05.2018 1.110.111 19 AKKUŞ ORDU MAP-GEOLOGY-ZONING ZONING 25.06.2015 17.12.2018 195.359 CONSTRUCTION 20 FİLYOS ZONGULDAK ZONING PLAN ZONING 02.06.2015 18.12.2018 4.012 TİLLO (SİİRT) SEWERAGE AND DRINKING WATER 51 TİLLO SİİRT SEWAGE 12.10.2016 05.12.2018 6.749.944 Grup (Payment under the CONSTRUCTION 21 EKİNÖZÜ K.MARAŞ GEOLOGICAL + ZONING PLAN GEOLOGICAL RESEARCH 01.08.2017 20.02.2018 Zoning Plan) 52 TONYA TRABZON SEWAGE TONYA (TRABZON) SEWERAGE CONSTRUCTION 20.04.2016 22.11.2018 9.288.222 Grup (Payment under the 22 ÇAMLIHEMŞİN RİZE GEOLOGICAL + ZONING PLAN GEOLOGICAL RESEARCH 11.05.2017 20.02.2018 53 VİZE KIRKLARELİ SEWAGE VİZE (KIRKLARELİ) SEWERAGE CONSTRUCTION 16.11.2012 17.05.2018 3.558.530 Zoning Plan)

YALOVA (MERKEZ)-ÇİFTLİKKÖY-KADIKÖY-TAŞKÖPRÜ- 23 PERŞEMBE ORDU GEOLOGICAL INVESTIGATIONS GEOLOGICAL RESEARCH 22.12.2015 20.02.2018 80.417 54 YALOVA YALOVA SEWAGE TERMAL (YALOVA) MUNICIPALITY GROUP DEEP SEA 22.03.2016 04.09.2018 10.727.847 Grup (Payment under the 24 SEYİTGAZİ ESKİŞEHİR GEOLOGICAL-ZONING-MAP GEOLOGICAL RESEARCH 23.03.2017 03.10.2018 DISCHARGE CONSTRUCTION Zoning Plan)

55 YAZIHAN MALATYA SEWAGE YAZIHAN (MALATYA) SEWERAGE CONSTRUCTION 25.11.2016 26.02.2018 7.265.559 Total 1.971.127 YEŞİLYURT- FİNİKE (ANTALYA) MEMBRANE BİOREACTOR TECHNOLOGY SAHİLKENT- 56 ANTALYA SEWAGE AAT AND YEŞİLYURT-SAHİLKENT-HASYURT-TURUNÇOVA 07.05.2013 08.10.2018 47.421.419 HASYURT- (ANTALYA) CHANNEL CONSTRUCTION TURUNÇOVA Scope of the Year in 2018 and Moroccan Bank’s Donations Help Sektöründebitiril Pavement Works TOTAL 541.747.354

Municipality Commencement Completion Number Provinces Sector Characteristics Cost (TRL) Name Date Date 1 ALADAĞ ADANA PRODUCTION Aladağ 300 Persons Pension Building Construction 20.10.2016 28.06.2018 8.878.636 2 NİĞDE NİĞDE PRODUCTION Bor Quran Course Building Construction 21.07.2017 19.07.2018 5.679.916 Darende (Malatya) District Student Dormitory 100% In 2018 Ilbank Grant Works Completed 3 DARENDE MALATYA PRODUCTION 19.09.2017 29.08.2018 592.390 Construction Num- Municipality Commencement Completion Provinces Sector Characteristics Cost (TRL) 4 CİZRE (**) ŞIRNAK PRODUCTION Recreation Area Arrangement of Tigris River (Nur Quarter) 17.10.2016 14.02.2017 1.464.643 ber Name Date Date 5 BOZKIR KONYA PRODUCTION Hisarlık Neighborhood Social Facility Construction Work 06.06.2018 02.11.2018 200.000 PROVINCIAL 1 SPECIAL BİNGÖL MAP MAP 06.12.2017 27.08.2018 46.020 Olur Girls and Boys Hostel Buildings Rough Construction 6 OLUR ERZURUM PRODUCTION 18.05.2017 26.10.2018 4.152.465 ADMINISTRATION Works and Various Landscaping Works

PROVINCIAL Total 20.968.050 2 SPECIAL BİNGÖL GEOLOGICAL RESEARCH JGEOLOGICAL RESEARCH 02.07.2018 03.10.2018 150.800 ADMINISTRATION * It was added to the year 2018 as it is not included in the list of the year it was completed. Total 196.820 ** In 2018, additional appropriations were granted. 224

ILLER BANK ANNUAL REPORT 2018

Contact Information

ILLER BANK INC. ILLER BANK INC. ADANA ANKARA HEADQUARTERS DIŞKAPI SERVICE BUILDING REGIONAL DIRECTORATE REGIONAL DIRECTORATE

Kızılırmak Mah. Ufuk Üniv. Zübeyde Hanım Mah. Güzelyalı Mah. Adnan Çamlıca Mah. Anadolu Blv. Cad. No:12 Çukurambar 657. Sokak No: 14 P.K. Kahveci Bulvarı No: 19 İller Bankası Ek Tesisleri Çankaya/ANKARA 06110 Altındağ/ANKARA Çukurova Macunköy Yenimahalle

TEL: 0 312 508 70 00 Tel: 0312 303 30 00 TEL: 0 322 235 06 91 TEL: 0 312 387 52 11

ANTALYA BURSA DİYARBAKIR ELAZIĞ REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE

Kültür Mah. 3801 Sokak Odunluk Mah. Lefkoşe Cad. Hintlibaba Cad. No: 10 Cumhuriyet Mah. Dumlupınar Bulvarı No: 9 / B Mihraplı Plaza Yenişehir 160 Sokak No: 48 No: 11 Kepez Nilüfer

TEL: 0 242 227 05 12 TEL: 0 224 220 10 00 TEL: 0 412 228 97 50 TEL: 0424 218 88 71

ERZURUM ESKİŞEHİR GAZİANTEP İSTANBUL REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE

Solakzade Mah. Yavuz Kırmızı Toprak Mah. M. Fevzi Çakmak Bulvarı Barbaros Mah. Begonya Sultan Selim Bulvarı Ufuktan Sok. No:19 No: 108 Şehit Kamil Sok. No: 9 Ataşehir No: 49 Palandöken Odunpazarı

TEL: 0 442 235 50 72 TEL: 0 222 226 10 40 TEL: 0 342 321 78 50 TEL: 0 216 370 15 84

İZMİR KAYSERİ KASTAMONU KONYA REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE

Halide Edip Adıvar Caddesi Kocasinan Bulvarı Mevlana Kuzeykent Mah. Miralay Yenişehir Mah. Ahmet No: 110 Mah. No: 147 Halit Bey Cad. No: 10 Hilmi Nalçacı Cad. No: 20 Karabağlar Kocasinan Selçuklu

TEL: 0 232 255 41 15 TEL: 0 352 222 89 24 TEL: 0 366 215 00 74 TEL: 0 332 238 82 00

SAMSUN SİVAS TRABZON VAN REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE REGIONAL DIRECTORATE

Mimar Sinan Mah. 115 Mimar Sinan Mah. Sahil Cad. Yalıncak Mevkii Alipaşa Mah. İskele Cad. Sokak No: 1 Atakum İller Caddesi No: 4 Ortahisar A-Blok No: 111 İpekyolu

TEL: 0 362 311 65 00 TEL: 0 346 227 63 06 TEL: 0 462 334 60 40 TEL: 0 432 216 80 93